BS7 - CEO Connectedness and Accounting Conservatism

Rohit Agarwal, USC UpstateFollow

SCURS Disciplines

Business

Document Type

General Presentation (Oral)

Invited Presentation Choice

Not Applicable

Abstract

Firms with Connected CEOs and board members increase the likelihood of corporate fraud and lower financial reporting quality. Thus, I predict that firms with Connected CEOs will tend to delay loss recognition and use less conservative accounting. Using different measures of accounting conservatism, I expect to find robust evidence of a negative relation between CEO connectedness measure and accounting conservatism. In addition, LaFond and Roychowdhury (2008) find that asymmetric timeliness of earnings decreases with managerial ownership due to reduced agency problems. I plan to test the moderating effect of CEO ownership on the negative relation between CEO Connectedness and accounting conservatism and expect to find that the negative relation holds. My findings will contribute to the literature on CEO connections and accounting conservatism.

Keywords

CEO Connectedness, Accounting Conservatism

Start Date

10-4-2026 4:10 PM

Location

CASB 102

End Date

10-4-2026 4:25 PM

This document is currently not available here.

Share

COinS
 
Apr 10th, 4:10 PM Apr 10th, 4:25 PM

BS7 - CEO Connectedness and Accounting Conservatism

CASB 102

Firms with Connected CEOs and board members increase the likelihood of corporate fraud and lower financial reporting quality. Thus, I predict that firms with Connected CEOs will tend to delay loss recognition and use less conservative accounting. Using different measures of accounting conservatism, I expect to find robust evidence of a negative relation between CEO connectedness measure and accounting conservatism. In addition, LaFond and Roychowdhury (2008) find that asymmetric timeliness of earnings decreases with managerial ownership due to reduced agency problems. I plan to test the moderating effect of CEO ownership on the negative relation between CEO Connectedness and accounting conservatism and expect to find that the negative relation holds. My findings will contribute to the literature on CEO connections and accounting conservatism.