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
Hilary, Gilles and Huang, Sterling and Xu, Yanping, Marital Status and Earnings Management (A Note) (November 8, 2016). Georgetown McDonough School of Business Research Paper No. 2876032. Available at SSRN: https://ssrn.com/abstract=2876032 or http://dx.doi.org/10.2139/ssrn.2876032