Abstract

http://ssrn.com/abstract=2131476
 
 

Citations (2)



 


 



Honoring One's Word: CEO Integrity and Accruals Quality


Shane S. Dikolli


Duke University - Fuqua School of Business

William J. Mayew


Duke University - Fuqua School of Business

Thomas D. Steffen


Duke University - Fuqua School of Business

May 28, 2013

AAA 2013 Management Accounting Section (MAS) Meeting Paper

Abstract:     
We forward and validate using survey data a linguistically derived measure of CEO integrity by documenting a negative association between CEO use of causation words and employee perceptions of the extent to which their CEOs honor their word. Using causation words from annual shareholder letters, we then create CEO integrity scores for a large archival sample. Accounting accruals capture the CEOs word regarding firm cash flows, and we find that high-integrity CEOs report accruals that better map into cash flows. Given that poor accruals quality is costly, we also find boards rationally respond by increasing governance over low-integrity CEOs.

Number of Pages in PDF File: 41

Keywords: Integrity, Performance evaluation, Behavioral traits

JEL Classification: M40, J10

working papers series


Download This Paper

Date posted: August 18, 2012 ; Last revised: July 8, 2013

Suggested Citation

Dikolli, Shane S. and Mayew, William J. and Steffen, Thomas D., Honoring One's Word: CEO Integrity and Accruals Quality (May 28, 2013). AAA 2013 Management Accounting Section (MAS) Meeting Paper. Available at SSRN: http://ssrn.com/abstract=2131476 or http://dx.doi.org/10.2139/ssrn.2131476

Contact Information

Shane Sami Dikolli (Contact Author)
Duke University - Fuqua School of Business ( email )
100 Fuqua Drive
Box 90120
Durham, NC 27708-0120
United States
919-660-1949 (Phone)
919-869-1901 (Fax)
William J. Mayew
Duke University - Fuqua School of Business ( email )
Box 90120
Durham, NC 27708-0120
United States
919-660-7781 (Phone)
919-660-7971 (Fax)
HOME PAGE: http://www.fuqua.duke.edu/faculty/alpha/mayew.htm
Thomas D. Steffen
Duke University - Fuqua School of Business ( email )
100 Fuqua Drive
Box 90120
Durham, NC 27708-0120
United States
919-660-7628 (Phone)
HOME PAGE: http://www.duke.edu/~tds24/
Feedback to SSRN


Paper statistics
Abstract Views: 1,336
Downloads: 362
Download Rank: 43,757
Citations:  2

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo2 in 4.328 seconds