Manager Regulatory Focus and Asymmetric Timeliness of Earnings
Other Title
經理人調節焦點與會計穩健性
Journal
會計評論
Journal Issue
75
Start Page
41
End Page
79
ISSN
1018-1687
Date Issued
2022-07
Author(s)
吳藺芝
Abstract
Motivated by prior studies that examine the effect of managerial attributes on corporate policies and strategies, this study examines the relationship between CEOs' regulatory focus and accounting conservatism as measured by asymmetric timeliness of earnings. According to regulatory focus theory (Crowe and Higgins 1997), people with promotion focus are more willing to take risks to seek achievement, whereas people with prevention focus are more conservative to avoid mistakes. We measure accounting conservatism using Basu's (1997) model and C_Score (Khan and Watts 2009) and examine whether CEOs with the prevention focus are more conservative than CEOs with the promotion focus. We find that CEO's prevention focus is positively associated with accounting conservatism, suggesting that CEOs with prevention focus are more risk-averse and have a higher tendency to be conservative than the other CEOs.
Subjects
Regulatory focus
Promotion focus
Prevention focus
Accounting conservatism
Type
journal article