Does Hiring a New CFO Change Things? An Investigation of Changes in Discretionary Accruals

By Marshall A. Geiger, D. North. 2006

416 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/49acfef992d388d2d9cfbc8ed003a5f4bb178305

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Terry Shevlin
2. Qiang Cheng
3. Martin Walker
4. Weili Ge
5. Catherine Schrand
6. Patricia M. Dechow
7. Jimmy Lee
8. M. Hiebl

In Strategy and Management

1. Martin Walker
2. Weili Ge
3. Qiang Cheng
4. Terry Shevlin
5. Catherine Schrand
6. Patricia M. Dechow
7. Sami Vähämaa
8. Emilia Peni

Citations in the corpus

• Internal Governance and Real Earnings Management (2016, background): “For example, Graham et al. (2005) report that 80 percent of surveyed CFOs stated that, in order to deliver earnings, they would decrease research and development (R&D), advertising, and maintenance expenditures, while 55 percent said they would postpone a new project, both of which are real activiti”
• Accounting Program Research Rankings by Topical Area and Methodology (2010, neutral): “, Geiger and North [2008] examine how hiring a new CEO [managerial] changes discretionary accruals [financial]).”
• Understanding Earnings Quality: A Review of the Proxies, Their Determinants and Their Consequences (2010, background): “, 2008) and that managerial turnover is a disciplining mechanism that mitigates earnings management (Moore, 1973; DeAngelo, 1988; Collins and DeAngelo, 1990; Dechow and Sloan, 1991; Pourciau, 1993(69); Geiger and North, 2006).”
• CFO gender and earnings management: evidence from China (2016, background): “firms, Geiger and North (2006) find that the departing CFOs manage up earnings in year (t-1) (t is the year of CFO transition) in an attempt to keep their jobs or to get a better retirement package. They also find that the new CFOs intentionally manage down earnings in year (t+1) so that they can ta”
• Gender Differences in Financial Reporting Decision-Making: Evidence from Accounting Conservatism (2015, neutral): “Mian (2001), Geiger and North (2006), Chava and Purnanandam (2010), Jiang, Petroni, and Wang (2010), and Ge et al. (2011), among others, provide strong evidence showing that among senior managers the CFO has the most direct impact on accounting related decisions.”
• CFOs and CEOs: Who Have the Most Influence on Earnings Management? (2010, neutral): “Prior research suggests that newly appointed CFOs drive changes in discretionary accruals of their new firms (Geiger and North, 2006).”
• Implications of Power: When the CEO Can Pressure the CFO to Bias Reports (2014, neutral): “A CFO who was an internal hire and/or hired during the CEO’s tenure would be expected to have less power relative to the CEO, consistent with the evidence in Geiger and North (2006) that externally appointed CFOs are associated with lower discretionary accruals.”
• Female executives and earnings management (2010, methodology): “Thus, consistent with prior research (Geiger and North, 2006; Jiang et al., 2008; Matsunaga and Yeung, 2008), our results provide evidence about the significant influence of CFOs on the quality of accounting information.”
• Upper echelons theory in management accounting and control research (2014, background): “Related studies (e.g., Geiger and North 2006; Li et al. 2010) show that substantial changes to finance and financial accounting practices can be observed in firms with newly hired CFOs.”