Exploring the link between internationalization of top management and accounting quality : The CFO's international experience matters
- This study examines whether and how top management internationalization is associated with accounting quality. We combine upper echelons perspectives, agency theory, human capital theory and accounting research, and demonstrate that top management internationalization mitigates the level of managerial discretion in financial reporting. By decomposing the top management team, our analysis reveals that higher levels of accounting quality are associated with the internationalization of the CFO, not the internationalization of the CEO. In particular, we find that CFO’s international education and international work experience are important factors in higher accounting quality.
Document Type: | Article |
---|---|
Language: | English |
Author: | Tobias Dauth, Paul Pronobis, Stefan Schmid |
Chairs and Professorships: | Chair of International Management |
DOI: | https://doi.org/10.1016/j.ibusrev.2016.05.007 |
Parent Title (English): | International Business Review |
ISSN: | 0969-5931 |
Volume: | 26 |
Issue: | 1 |
Year of Completion: | 2017 |
First Page: | 71 |
Last Page: | 88 |
Tag: | Accounting quality; CEO; Earnings management; International executives; Top management teams |
Content Focus: | Academic Audience |
Peer Reviewed: | Yes |
Rankings: | AJG Ranking / 3 |
VHB Ranking / B | |
SJR Ranking / Q1 | |
Sustainable Development Goals: | Peace, justice and strong institutions |
Licence (German): | ![]() |