|
|
|
| CEO Tenure and Bad News Hoarding |
| XU Yan, DENG Yuting, CHEN Qinyuan, XU Nianhang
|
Z-Park Fund; China International Capital Corporation Limited;
School of Business ,Renmin University of China |
|
|
|
|
Abstract How does career concerns influence managers' information disclosure decisions is a hot issue in finance research. Using a sample of Chinese A-share listed companies during the period of 1999-2014, this paper investigates how CEOs withhold firms' bad news during their tenure and the possible methods of bad news hoarding. Our results show that: CEOs hide more bad news in early years of their tenure and a year before their departure. This effect is more pronounced in non-SOEs. CEOs take “big bath” and expose bad news hidden by last CEO in their first year of tenure. In addition, earnings management is a channel through which CEOs hide bad news. Further analysis shows that only non-family CEOs in family firms have career concerns to withhold bad news. Overall, our study reveals the dynamic change of firms' information disclosure policy during CEOs' tenure. This paper has important implications on how to restrict CEOs' information disclosure management and reduce stock price crash risk.
|
|
Received: 11 August 2016
Published: 02 April 2018
|
|
|
|
|
| [1] |
丁友刚和宋献中,2011,《政府控制、高管更换与公司业绩》,《会计研究》第6期,第70~76页.
|
| [2] |
江轩宇和许年行,2015,《企业过度投资与股价崩盘风险》,《金融研究》第8期,第141~158页.
|
| [3] |
李培功和肖珉,2012,《CEO任期与企业资本投资》,《金融研究》第2期,第127~141页.
|
| [4] |
刘青松和肖星,2015,《败也业绩,成也业绩?——国企高管变更的实证研究》,《管理世界》第3期,第151~163页.
|
| [5] |
唐松和孙铮,2014,《政治关联, 高管薪酬与企业未来经营绩效》,《管理世界》第5期,第93~105页.
|
| [6] |
王曾、符国群、黄丹阳和汪剑锋,2014,《国有企业CEO“政治晋升”与“在职消费”关系研究》,《管理世界》第5期,第157~171页.
|
| [7] |
许年行、江轩宇、伊志宏和徐信忠,2012,《分析师利益冲突、乐观偏差与股价崩盘风险》,《经济研究》第7期,第127~140页.
|
| [8] |
杨瑞龙、王元和聂辉华,2013,《“准官员”的晋升机制:来自中国央企的证据》,《管理世界》第3期,第23~33页.
|
| [9] |
郑志刚、李东旭、许荣、林仁韬和赵锡军,2012,《国企高管的政治晋升与形象工程——基于N 省A 公司的案例研究》,《管理世界》第10期,第146~156页.
|
| [10] |
Ali A.,W. N. Zhang.2015. “CEO Tenure and Earnings Management”, Journal of Accounting and Economics, 59(1): 60-79.
|
| [11] |
Baginski S. P.,J. M. Hassell, and M. D. Kimbrough.2002. “The Effect of Legal Environment on Voluntary Disclosure: Evidence from Management Earnings Forecasts Issued in U.S. and Canadian Markets”, The Accounting Review, 77 (1): 25~50.
|
| [12] |
Bai C. E.,D. D. Li,Z. G. Tao, and Y. J. Wang.2000. “A Multitask Theory of State Enterprise Reform”, Journal of Comparative Economics, 28(4): 716~738.
|
| [13] |
Barker V. L.,G. C. Mueller.2002. “CEO Characteristics and Firm R&D Spending”, Management Science, 48(6): 782~801.
|
| [14] |
Bo Z. Y.1996. “Economic Performance and Political Mobility: Chinese Provincial Leaders”, Journal of Contemporary China, 5(12): 135~154.
|
| [15] |
Benmelech E.,E. Kandel, and P. Veronesi.2010. “Stock-based Compensation and CEO (dis) Incentives”, The Quarterly Journal of Economics, 125(4): 1769~1820.
|
| [16] |
Bushman, R., Dai, Z. and Wang, X.2010. “Risk and CEO Turnover”, Journal of Financial Economics, 96(3): 381~398.
|
| [17] |
Chen J.,H. Hong, and J. C. Stein.2001. “Forecasting Crashes: Trading Volume, Past Returns, and Conditional Skewness in Stock Prices”, Journal of Financial Economics, 61(3): 345~381.
|
| [18] |
DeAngelo L. E.1988. “Managerial Competition,Information Costs and Corporate Governance: the Use of Accounting Performance Measures in Proxy Contests”, Journal of Accounting and Economics, 10(1): 3~36.
|
| [19] |
Dechow P.,R. Sloan, and A. Sweeney.1995. “Detecting Earnings Management”,The Accounting Review, 70(2): 193~225.
|
| [20] |
Fama E.F.1980. “Agency Problems and the Theory of the Firm”, Journal of Political Economy, 88(2): 288~307.
|
| [21] |
Hutton A. P.,A. J. Marcus, and H. Tehranian.2009. “Opaque Financial Reports,R2, and Crash Risk”, Journal of Financial Economics, 94(1): 67~86.
|
| [22] |
Hermalin B. E.,M. S. Weisbach.2012. “Information Disclosure and Corporate Governance”, Journal of Finance, 67(1): 195~233.
|
| [23] |
Jensen M.C.,W. H. Meckling.1976. “Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure”, Journal of Financial Economics, 3(76): 305~360.
|
| [24] |
Kothari S.P.,S. Shu, and P. D. Wysocki.2009. “Do Managers Withhold Bad News?”, Journal of Accounting Research, 47(1): 241~276.
|
| [25] |
Kim J. B.,Y. H. Li, and L. D. Zhang.2011a. “Corporate Tax Avoidance and Stock Price Crash Risk: Firm-level Analysis”, Journal of Financial Economics, 100(3): 639~662.
|
| [26] |
Kim J. B.,Y. H. Li, and L. D. Zhang.2011b. “CFOs versus CEOs: Equity Incentives and Crashes”, Journal of Financial Economics, 101(3): 713~730.
|
| [27] |
Kim J. B.,L. D. Zhang.2015. “Accounting Conservatism and Stock Price Crash Risk: Firm-level Evidence”, Contemporary Accounting Research, forthcoming.
|
| [28] |
Kato T.,C. Long.2006. “CEO Turn Over, Firm Performance, andEnterprise Reform in China: Evidence from Micro Data”, Journal of Comparative Economics, 34(4): 796~817.
|
| [29] |
LaFond R.,R. L. Watts.2008. “The Information Role of Conservatism”, The Accounting Review, 83(2): 447~478.
|
| [30] |
McVay S E.2006. “Earnings Management using Classification Shifting: An Examination of Core Earnings and Special Items”, The Accounting Review, 81(3): 501~531.
|
| [31] |
Murphy K. J.,J. L. Zimmerman.1993. “Financial Performance Surrounding CEO Turnover”, Journal of Accounting and Economics, 16(1-3): 273~315.
|
| [32] |
Piotroski J. D.,T. J. Wong, and T. Y. Zhang.2015. “Political Incentives to Suppress Negative Information: Evidence from Chinese Listed Firms”, Journal of Accounting Research, 53(2): 405~459.
|
| [33] |
Strong J. S.,J. R. Meyer.1987. “Asset Writedowns: Managerial Incentives and Security Returns”, Journal of Finance, 42(2): 643~661.
|
| [34] |
Xu N. H.,X. R. Li,Q. B. Yuan, and K. C. Chan.2014. “Excess Perks and Stock Price Crash Risk: Evidence from China”, Journal of Corporate Finance, 25(2): 419~434.
|
|
|
|
