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.
|Journal||Review of Pacific Basin Financial Markets and Policies|
|State||Published - Jun 2013|
- earnings management
- family chief executive officers
- family control
- M41 © 2013 World Scientific Publishing Co. and Center for Pacific Basin Business, Economics and Finance Research.
- Managerial overconfidence
- moderating effect D03