CEO Career Horizon, CEO Power, Corporate Governance and Earnings Quality: Evidence from Egypt(Pages 136-151)
Dalia Ali Mostafa Hemdan1,*, Suhaily Hasnan2,*, Saif-Ur-Rehman3 and Mazurina Mohd Ali2
1Faculty of Accountancy, Universiti Teknologi MARA, Cawangan Selangor, Kampus Puncak Alam, Selangor, Malaysia.
2International School, Vietnam National University, Hanoi, Vietnam.
3School of Business, Skyline University College, Sharjah, United Arab Emirates.
This study analysed the determinants of firms’ reported earnings quality (hereafter FREQ) for Egyptian firms from 2008 to 2019, using panel data. The Chief Executive Officer (CEO) career horizon (a CEO approaching retirement) is negatively associated with FREQ; CEO power dynamics (CEO duality, CEO stock ownership, CEO tenure, and CEO political connections) negatively affect FREQ; and board independence significantly moderates (weakens) the negative impact of CEO ownership and CEO tenure on FREQ. The findings do not support the weakening or substitution role of board independence for the negative impact of CEO career horizon, CEO duality and CEO political connections on FREQ. The presence of gender-critical mass serves as a substitution mechanism for the negative impact of CEO career horizon and CEO power dynamics (duality, ownership, tenure, and political connections) on FREQ. The findings on the interplay among CEO power dynamics shows that CEO duality, CEO ownership and CEO tenure augment each other in their negative role in determining FREQ. CEO educational level substitutes the negative impacts of CEO ownership and CEO tenure on FREQ. Principal analysis was observed for robustness through propensity matching score and difference-in-difference (DID) techniques. This study adds new knowledge by exploring the negative consequences of CEO career horizon and CEO power dynamics, and provides insights into the constraining role of corporate governance, strengthens reverse-causality, and uses DID approach and propensity matching techniques.
CEO Career Horizon, CEO Power, Corporate Governance, Earnings Quality.
How to Cite:
Dalia Ali Mostafa Hemdan, Suhaily Hasnan, Saif-Ur-Rehman and Mazurina Mohd Ali. CEO Career Horizon, CEO Power, Corporate Governance and Earnings Quality: Evidence from Egypt. [ref]: vol.21.2023. available at: https://refpress.org/ref-vol21-a14/
Licensee REF Press This is an open access article licensed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/3.0/) which permits unrestricted, non-commercial use, distribution and reproduction in any medium, provided the work is properly cited.