Managerial Ability and Earnings Quality

By Peter R. Demerjian, Baruch Lev, Melissa F. Lewis, Sarah E. McVay. 2013

977 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/ed0f09768ce8ab52eae476c86902a3089e0e93af

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In Accounting

1. Mostafa Monzur Hasan
2. Ahsan Habib
3. Qiang Cheng
4. Terry Shevlin
5. David B. Farber
6. Jimmy Lee
7. Dan S. Dhaliwal
8. Andrew C. Call

In Strategy and Management

1. Qiang Cheng
2. David B. Farber
3. Mostafa Monzur Hasan
4. Terry Shevlin
5. Ahsan Habib
6. Jimmy Lee
7. Dan S. Dhaliwal
8. Edward J. Podolski

Citations in the corpus

• Managerial Ability, Investment Efficiency and Stock Price Crash Risk (2017, positive): “More able managers are better able to gauge the timing and economic returns from investment, as well as to synthesize information into reliable, forward-looking estimates of the risks and returns associated with corporate investment (Demerjian et al., 2013).”
• The Role of Managerial Ability in Corporate Tax Avoidance (2017, positive): “…(e.g., longer CEO tenure, higher CEO pay, higher historical stock and accounting performance, more CEO media mentions, etc.), MASCORE is the only managerial ability measure that captures 5 See Appendix A of Demerjian et al. (2013) for additional information regarding Equations (2a) and (2b).”
• Corporate governance and earnings management in concentrated markets (2020, methodology): “We select Gunny’s Model (2010) to measure real earnings management as it captures more aspects of real earnings management activities compared to other models (Demerjian et al., 2013; Gunny, 2010).”
• Political capital and CEO entrenchment: Evidence from CEO turnover in Chinese non-SOEs (2017, methodology): “…an index to reflect the managerial ability of each CEO in our sample, using the information of a number of measures for managerial ability which have been mentioned in the existing studies (Rose and Shepard, 1994; Murphy and Zabojnik, 2004; Demerjian et al., 2012; Demerjian et al., 2013) 8 .”
• Managerial ability and real earnings management (2017, background): “Third, higher-ability managers have a superior knowledge of their firms' operating environment (Demerjian et al., 2013), which enables them to align REM with their reporting strategies.”
• Internal Governance and Real Earnings Management (2016, background): “CEOs with higher compensation (which also signifies their ability in the competitive labor market) are less likely to engage in real earnings management, which suggests better-ability CEOs are associated with better earnings quality (Demerjian et al. 2013).”
• Directors with foreign experience and corporate tax avoidance (2020, methodology): “The effective tax rate = (the income tax expense – deferred tax expense)/ (income before taxes - deferred tax expense/statutory income tax rate) DDBTD Abnormal book-tax difference calculated following Desai and Dharmapala (2006, 2009).”
• The influence of individual executives on corporate financial reporting: A review and outlook from the perspective of upper echelons theory (2016, background): “Likewise, Demerjian et al. (2013) report that high-ability management executives decrease earnings management and that hiring high-ability CFOs can further improve earnings quality through the better estimation of accruals.”