Document Type
Report
Key Takeaways
• Interim CEO successors are 35.7 percent more likely to engage in earnings management as a means to boost short-term performance than non-interim CEO successors. • Interim CEO successors who manage earnings are 6.1 percent more likely to be named permanent CEO. • Effective boards of directors and greater analyst coverage of the company reduce the likelihood that an interim CEO who manages earnings will be named the permanent successor.
Publication Date
2015
Source
Chen, G., Luo, S., Tang, Y., & Tong, J.Y. (Forthcoming). Passing Probation: Earnings Management by Interim CEOs and Its Effect on Their Promotion Prospects. Academy of Management Journal.
Disciplines
Business
Copyright
© 2015, University of South Carolina
Publication Info
Chen, G., Luo, S., Tang, Y., & Tong, J.Y. (Forthcoming). Passing Probation: Earnings Management by Interim CEOs and Its Effect on Their Promotion Prospects. Academy of Management Journal., 2015.