TY - JOUR
T1 - CEO masculine behavior and earnings management
T2 - does ethnicity matter?
AU - Elsheikh, Tamer
AU - Hashim, Hafiza Aishah
AU - Mohamad, Nor Raihan
AU - Youssef, Mayada Abd El Aziz
AU - Almaqtari, Faozi A.
N1 - Publisher Copyright:
© 2023, Emerald Publishing Limited.
PY - 2023
Y1 - 2023
N2 - Purpose: This study aims to investigate the relationship between the Chief Executive Officers (CEOs’) masculinity, CEO characteristics (accounting background, turnover and ethnicity/race) and earnings management (EM) in Malaysia. It also examined the moderating effect of the CEOs’ ethnicity/race (Bumiputera and non-Bumiputera) on the relationship between CEO masculinity and EM. Design/methodology/approach: The analyses were based on a panel data set of 260 corporates listed on the Bursa Malaysia from 2009 to 2019. Python/code was used to calculate the facial width-to-height ratio (fWHR), while testosterone (TESTN) was calculated based on CEO age and fWHR. To estimate the results, panel data analysis with a fixed effect model was used. Findings: The result shows that fWHR and TESTN have a significant positive effect on EM. CEO race has a significant impact on EM, implying that non-Bumiputera CEOs are more likely to be associated with EM. There was no statistically significant evidence that race moderates the relationship between CEO masculinity and EM. Research limitations/implications: The research contributes to the growing evidence in the field of neuroscience that it is possible to infer aspects of an individual’s behavior based on their facial structure and their TESTN levels. The findings provide new evidence supporting Malaysian Government policies in reducing masculinity on boards of directors and senior executive positions, which will positively affect the integrity of financial reports. Originality/value: To the best of the authors’ knowledge, it is the first research to explain whether the ethnicity/race of CEOs is related to EM and whether it has a significant moderate effect on the relationship between masculinity and EM.
AB - Purpose: This study aims to investigate the relationship between the Chief Executive Officers (CEOs’) masculinity, CEO characteristics (accounting background, turnover and ethnicity/race) and earnings management (EM) in Malaysia. It also examined the moderating effect of the CEOs’ ethnicity/race (Bumiputera and non-Bumiputera) on the relationship between CEO masculinity and EM. Design/methodology/approach: The analyses were based on a panel data set of 260 corporates listed on the Bursa Malaysia from 2009 to 2019. Python/code was used to calculate the facial width-to-height ratio (fWHR), while testosterone (TESTN) was calculated based on CEO age and fWHR. To estimate the results, panel data analysis with a fixed effect model was used. Findings: The result shows that fWHR and TESTN have a significant positive effect on EM. CEO race has a significant impact on EM, implying that non-Bumiputera CEOs are more likely to be associated with EM. There was no statistically significant evidence that race moderates the relationship between CEO masculinity and EM. Research limitations/implications: The research contributes to the growing evidence in the field of neuroscience that it is possible to infer aspects of an individual’s behavior based on their facial structure and their TESTN levels. The findings provide new evidence supporting Malaysian Government policies in reducing masculinity on boards of directors and senior executive positions, which will positively affect the integrity of financial reports. Originality/value: To the best of the authors’ knowledge, it is the first research to explain whether the ethnicity/race of CEOs is related to EM and whether it has a significant moderate effect on the relationship between masculinity and EM.
KW - Bumiputera
KW - Earnings management
KW - Ethnicity
KW - Facial width-to-height ratio
KW - Malaysia
KW - Masculinity
KW - Testosterone
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U2 - 10.1108/JFRA-10-2022-0383
DO - 10.1108/JFRA-10-2022-0383
M3 - Article
AN - SCOPUS:85148530166
SN - 1985-2517
JO - Journal of Financial Reporting and Accounting
JF - Journal of Financial Reporting and Accounting
ER -