Does Timely Loss Recognition Improve the Board”s Ability to Learn from Market Prices? Evidence from Worldwide CEO Turnover
This study investigates how timely recognition of economic losses (TLR) in accounting reports influences the weights assigned to accounting earnings and market returns in corporate CEO turnover decisions.Empirical results with a sample of CEO turnovers from 37 counties show that as TLR increases,CEO turnover becomes more sensitive to both earnings and market returns,suggesting that TLR facilitates the board”s effective use of both accounting and market performance information in CEO replacement decisions.Our results also show that TLR”s effect of enhancing the board”s ability to glean performance information from stock prices and to make an informed decision to replace a CEO is more pronounced in countries with low corporate financial transparency and/or high governance transparency.Our results are robust to a variety of sensitivity tests.
Timely losses recognition accounting conservatism CEO turnover corporate transparency international financial markets
胡金帅 Jeong-BonKim 林志军
厦门大学 香港城市大学 香港浸会大学
国内会议
昆明
英文
71-75
2012-07-01（万方平台首次上网日期，不代表论文的发表时间）