MILLER COLLEGE RESEARCH COLLOQUIUM
CEO Equity Incentives, Geographic Location, and Earnings Management
12:00 - 1:15 p.m., Monday March 23, 2020
Whitinger Building room 145, Hall of Fame Conference Room
RSVP before March 16 to millerdean@bsu.edu
Presented by Sharon Huang
Assistant Professor of Accounting
CEO Equity Incentives, Geographic Location, and Earnings Management
We examine the effect of geographic location on the relation between CEO equity incentives and earnings management for an unbalanced panel of 14,546 firm-year observations from 1992 to 2013. We find that firms’ headquarters locations moderate the relation between CEO equity incentives and earnings management. CEO equity incentives (Delta) encourage real earnings management in rural areas, but discourage real earnings management in urban areas. The results remain after controlling for self-selection bias, endogeneity, and omitted variable bias. Our results suggest that the reduction in information asymmetry and increased monitoring effectiveness associated with urban firms reduce the opportunistic effect of CEO equity incentives on earnings management.
Keywords: Managerial ownership, geographic location, earnings management, accrual-based earnings management, real earnings management
About Sharon Huang
Sharon Huang, assistant professor of accounting, received her Ph.D. from the University of Oklahoma. Her research focuses on topics related to earnings management, fair value accounting, managerial ability, and corporate governance. She has published papers on Advances in Accounting, International Journal of Revenue Recognition, International Journal of Business and System Research, and Today’s CPA and various conference proceedings. She has taught Intermediate Accounting, Principles of Financial Accounting, Principles of Management Accounting, and Cost Accounting.
MARK YOUR CALENDAR!
Miller College Research Colloquia Series 2019-2020
Date | Presenter
All colloquia are scheduled for 12:00 p.m. and meet in Whitinger Building, room 145.
Wednesday, April 1 | Sangwon Lee
Monday, April 20 | James McClure