Earnings Quality in Private SMEs: Do CEO Demographics Matter?

22 Pages Posted: 30 Mar 2018

See all articles by Francois Belot

Francois Belot

Université de Cergy-Pontoise

Stéphanie Serve

University of Cergy-Pontoise

Date Written: March 2018


This study investigates the impact of CEO demographics on earnings quality for private SMEs. Using a 2012 sample of 30,476 French firms, we first find strong empirical support for a gender effect: female‐run firms engage in less earnings management than do male‐run firms. This result is consistent with female CEOs being more risk averse than their male counterparts are when making financial decisions. Second, CEO age is negatively correlated with the magnitude of discretionary accruals, and the relationship between gender and earnings quality is stronger for older CEOs. Overall, our findings suggest that CEO demographics affect the quality of accounting information.

Suggested Citation

Belot, Francois and Serve, Stéphanie, Earnings Quality in Private SMEs: Do CEO Demographics Matter? (March 2018). Journal of Small Business Management, Vol. 56, pp. 323-344, 2018. Available at SSRN: https://ssrn.com/abstract=3152666 or http://dx.doi.org/10.1111/jsbm.12375

Francois Belot (Contact Author)

Université de Cergy-Pontoise ( email )

33 boulevard du Port
Cergy-Pontoise Cedex, 95011
+33 1 34 25 62 33 (Fax)

Stéphanie Serve

University of Cergy-Pontoise

33 Boulevard du Port
Cergy-Pontoise Cedex, Cedex 95011

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
PlumX Metrics