Intelligence, Institutions, a Culture of Secrecy and Earnings Management

Corporate Ownership & Control, Vol. 15(4), 2018, 96-106, DOI:10.22495/cocv15i4art9

28 Pages Posted: 8 May 2015 Last revised: 22 Aug 2018

See all articles by Thomas R. Loy

Thomas R. Loy

University of Bayreuth - Business Administration

Date Written: August 1, 2018

Abstract

This paper proposes novel insights at the intersection of psychology and corporate governance at the country-level. Research in psychology shows that intelligence and economic development are associated through good institutions. I propose that, although research in corporate governance regularly exhibits a negative correlation of good institutions and earnings management, high cognitive ability is crucial to fulfill the complicated task of managing earnings. Cultural factors regularly relate to managers' value systems and hence might influence their stance on earnings management. Therefore, I control for the mitigating effect of a secretive cultural disposition on the relation between intelligence and earnings management in a multivariate analysis.

Keywords: Intelligence, Institutions, National culture, Earnings management

Suggested Citation

Loy, Thomas R., Intelligence, Institutions, a Culture of Secrecy and Earnings Management (August 1, 2018). Corporate Ownership & Control, Vol. 15(4), 2018, 96-106, DOI:10.22495/cocv15i4art9. Available at SSRN: https://ssrn.com/abstract=2603226 or http://dx.doi.org/10.2139/ssrn.2603226

Thomas R. Loy (Contact Author)

University of Bayreuth - Business Administration ( email )

Universitätsstr. 30
Bayreuth, 95447
Germany

HOME PAGE: http://www.wp.uni-bayreuth.de

Register to save articles to
your library

Register

Paper statistics

Downloads
133
rank
209,596
Abstract Views
636
PlumX Metrics