The moderating effects of family control on the relation between managerial overconfidence and earnings management

I. Cheng Li, Jung Hua Hung

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16 Scopus citations

Abstract

This study investigates the relation between managerial overconfidence and earnings management and whether this relation is moderated by family control. Using a sample of Taiwan-listed firms, we estimate managerial overconfidence from manager dealings and determine the following: First, overconfident managers are more likely to engage in earnings management behaviors; second, family control negatively moderates the positive relation between managerial overconfidence and earnings management; and third, the negative moderating effects of family control primarily result from family chief executive officers.

Original languageEnglish
Article number1350010
JournalReview of Pacific Basin Financial Markets and Policies
Volume16
Issue number2
DOIs
StatePublished - Jun 2013

Keywords

  • earnings management
  • family chief executive officers
  • family control
  • M10
  • M41 © 2013 World Scientific Publishing Co. and Center for Pacific Basin Business, Economics and Finance Research.
  • Managerial overconfidence
  • moderating effect D03

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