Research Article
Research on the Influence of Background Characteristics of Enterprise Executive Teams on Earnings Management
@INPROCEEDINGS{10.4108/eai.19-5-2023.2334206, author={Yifan Yang and Xinglei Li and Weiyu Cheng and Herong Wang and Fan Yang and Na Feng and Yifan Tian}, title={Research on the Influence of Background Characteristics of Enterprise Executive Teams on Earnings Management}, proceedings={Proceedings of the 2nd International Conference on Bigdata Blockchain and Economy Management, ICBBEM 2023, May 19--21, 2023, Hangzhou, China}, publisher={EAI}, proceedings_a={ICBBEM}, year={2023}, month={7}, keywords={executive team; background characteristics; earnings management; jones modified model}, doi={10.4108/eai.19-5-2023.2334206} }- Yifan Yang
Xinglei Li
Weiyu Cheng
Herong Wang
Fan Yang
Na Feng
Yifan Tian
Year: 2023
Research on the Influence of Background Characteristics of Enterprise Executive Teams on Earnings Management
ICBBEM
EAI
DOI: 10.4108/eai.19-5-2023.2334206
Abstract
This study is supported by the upper echelon theory and uses the modified Jones model as a benchmark to measure two types of earnings management strategies: accrual-based earnings management and real earnings management. At the same time, the study examines the impact of the overall background characteristics of the executive team, including age, gender, education level, and financial industry experience, as proxy variables, on the choice of earnings management strategies. The results show that executive teams nearing retirement age and with a higher proportion of female members tend to pursue stability and are reluctant to implement earnings management strategies. Executive teams with higher educational levels are more inclined to implement real earnings management, while those with lower educational levels are more inclined towards accrual-based earnings management. Through this study, empirical evidence is provided for a deeper understanding of earnings management strategies among listed companies, and policy references are provided for regulatory authorities to increase supervision and utilize external audits.