TY - JOUR
T1 - The dilemma between ethics and reputation
T2 - evidence of earnings management following CEO pay cuts for women
AU - Huang, Wan Ci
AU - Liu, Wu Po
N1 - Funding Information:
This research is supported in part by ‘Higher Education SPROUT Project’ and ‘Center for Innovative FinTech Business Models’, Ministry of Education to the Headquarters of University Advancement at National Cheng Kung University (NCKU). We appreciate the comments made by the discussant and participants from the NCKU Accounting Practice and Development Forum held in October 2020.
Publisher Copyright:
© 2021 Informa UK Limited, trading as Taylor & Francis Group.
PY - 2022
Y1 - 2022
N2 - Lobo, Manchiraju, and Sridharan (2018) find that CEOs manipulate discretionary accruals to mitigate damage to their reputation after they experience substantial pay cuts. Extending their study, we examine whether the gender of CEOs alleviates this problem following a drastic compensation reduction. Our sample is composed of 4,130 firm-year observations. We find that female CEOs, who are generally viewed to be more ethical and risk-averse than males, engage in less earnings management following extreme pay cuts as compared to their male counterparts. Our results provide implications for market participants and governance boards related to assessing the use of compensation tools.
AB - Lobo, Manchiraju, and Sridharan (2018) find that CEOs manipulate discretionary accruals to mitigate damage to their reputation after they experience substantial pay cuts. Extending their study, we examine whether the gender of CEOs alleviates this problem following a drastic compensation reduction. Our sample is composed of 4,130 firm-year observations. We find that female CEOs, who are generally viewed to be more ethical and risk-averse than males, engage in less earnings management following extreme pay cuts as compared to their male counterparts. Our results provide implications for market participants and governance boards related to assessing the use of compensation tools.
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U2 - 10.1080/13504851.2021.1922581
DO - 10.1080/13504851.2021.1922581
M3 - Article
AN - SCOPUS:85106223204
VL - 29
SP - 1224
EP - 1228
JO - Applied Economics Letters
JF - Applied Economics Letters
SN - 1350-4851
IS - 13
ER -