Chief Financial Officer Demographic Characteristics and Fraudulent Financial Reporting in China

30 Pages Posted: 19 Mar 2020

See all articles by Jinghui Sun

Jinghui Sun

Xi'an Jiaotong University (XJTU)

Pamela Kent

University of Adelaide

Baolei Qi

Xi'an Jiaotong University (XJTU) - School of Management

Jiwei Wang

Singapore Management University - School of Accountancy

Date Written: December 2019

Abstract

We investigate whether management's cognitions, values and perceptions are associated with fraud for 18 863 firm‐years for Chinese listed firms from 2000 to 2014. Demographic characteristics of the chief financial officer (CFO) are used as proxies for management's cognitions, values and perceptions. We find that fraudulent financial reporting is higher when CFOs are younger, male, and have lower education backgrounds. An analysis of inflated earnings, fictitious assets, material omissions and other material misstatements provide similar results, with the exception that CFOs with higher education levels are associated with more inflated earnings.

Keywords: Fraud, CFO age, CFO gender, CFO education

Suggested Citation

Sun, Jinghui and Kent, Pamela and Qi, Baolei and Wang, Jiwei, Chief Financial Officer Demographic Characteristics and Fraudulent Financial Reporting in China (December 2019). Accounting & Finance, Vol. 59, Issue 4, pp. 2705-2734, 2019, Available at SSRN: https://ssrn.com/abstract=3556058 or http://dx.doi.org/10.1111/acfi.12286

Jinghui Sun (Contact Author)

Xi'an Jiaotong University (XJTU)

Shaanxi, 710049
China

Pamela Kent

University of Adelaide

No 233 North Terrace, School of Commerce
Adelaide, South Australia 5005
Australia

Baolei Qi

Xi'an Jiaotong University (XJTU) - School of Management ( email )

28,Xianning West Road
Xi'an, Shaanxi 710049
China

Jiwei Wang

Singapore Management University - School of Accountancy ( email )

60 Stamford Road
Singapore, 178900
Singapore
(65) 6828 0616 (Phone)
(65) 6828 0600 (Fax)

HOME PAGE: http://www.mysmu.edu/faculty/jwwang/

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