Volume 19, No. 4, 2022
Influence of CEOs Characteristics on the Earning Management via Moderating Role of Audit Committee Independence in Perspective of Pakistan
Adeel Ahmad , Muhammad Faisal , Salman Riaz and Zia Ur Rahman
Abstract
In order to improve organization performance and earnings management, the Chief Executive Officer appears to be the most influential member of the organization as they exercise authority over corporate policies such as financial statement, board structure, and organizational performance. To accomplish the linkage of CEOs characteristics on earnings management in non-financial firms, listed on the Pakistan Stock Exchange and use the independence of audit committee as a moderator to capture the influence on the firm’s performance. To accomplish the objective, selected firms listed on the Pakistan Stock Exchange were employed with the span 2010 to 2018. To assess the linkage between the characteristics of the CEOs and earnings management, the GMM model was utilized. The results of the GMM elaborates that CEO tenure and presence of independence of audit committee have a positive and significant impact on earning management. While, CEO duality have a positively and significantly linked with earning management. The presense of the audit commettie improve the performance and earning management of the firm. While employing the more CEO’s attributes of the can also influence the performance and earning management.
Pages: 429-446
Keywords: CEO age, Duality, Experience, Audit Committee Independence, and Earning Management.