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Marital Status and Earnings Management (A Note)

31 Pages Posted: 28 Nov 2016  

Gilles Hilary

Georgetown University - Department of Accounting and Business Law

Sterling Huang

Singapore Management University - School of Accountancy

Yanping Xu

Jinan University

Date Written: November 8, 2016

Abstract

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

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

Gilles Hilary

Georgetown University - Department of Accounting and Business Law ( email )

McDonough School of Business
Washington, DC 20057
United States

Sterling Huang

Singapore Management University - School of Accountancy ( email )

60 Stamford Road
Singapore 178900
Singapore
6808 7929 (Phone)

Yanping Xu (Contact Author)

Jinan University ( email )

Guangzhou, Guangdong 510632
China

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