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

I. Cheng Li; Jung Hua Hung

doi:10.1142/S0219091513500100

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

I. Cheng Li, Jung Hua Hung

Department of Business Administration

Research output: Contribution to journal › Article › peer-review

18 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 language	English
Article number	1350010
Journal	Review of Pacific Basin Financial Markets and Policies
Volume	16
Issue number	2
DOIs	https://doi.org/10.1142/S0219091513500100
State	Published - 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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title = "The moderating effects of family control on the relation between managerial overconfidence and earnings management",

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.",

keywords = "earnings management, family chief executive officers, family control, M10, M41 {\textcopyright} 2013 World Scientific Publishing Co. and Center for Pacific Basin Business, Economics and Finance Research., Managerial overconfidence, moderating effect D03",

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note = "Funding Information: We would like to thank Prof. Cheng-few Lee, Managing Editor, and two anonymous reviewers. In addition, we would like to acknowledge the financial support provided by the National Science Council (NSC 99-2410-H-008-027).",

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AU - Hung, Jung Hua

N1 - Funding Information: We would like to thank Prof. Cheng-few Lee, Managing Editor, and two anonymous reviewers. In addition, we would like to acknowledge the financial support provided by the National Science Council (NSC 99-2410-H-008-027).

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N2 - 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.

AB - 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.

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KW - family chief executive officers

KW - family control

KW - M10

KW - Managerial overconfidence

KW - moderating effect D03

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JO - Review of Pacific Basin Financial Markets and Policies

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

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Keywords

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