Marital Status and Earnings Management (A Note)
31 Pages Posted: 28 Nov 2016
Date Written: November 8, 2016
In this note, we examine the effect of CEO marital status on the riskiness of financial reporting. Using multiple proxies, we find that firms headed by a single CEO display a higher degree of earnings management than those headed by a married CEO. The effect is economically significant. Our results persist in an instrumental variable regression, suggesting that our results are not driven by innate heterogeneity in preferences.
Keywords: marital status, earnings management, risk-taking
JEL Classification: G02, G32, M41, M49
Suggested Citation: Suggested Citation