Impact of CEO-board social ties on accounting conservatism: Internal control quality as a mediator

Meiqun Yin, Jidong Zhang and Jing Han

The North American Journal of Economics and Finance, 2020, vol. 52, issue C

Abstract: The paper aims to explore the association between CEO-board social ties and accounting conservatism. We found there is a negative relationship between CEO-board social ties and accounting conservatism. It implies that more CEO-board social ties reduce board’s monitoring function and encourage CEO’s tendency to adopt less conservative principles for their own personal gains. We also found the mediating effect of the quality of internal control system between CEO-board ties and accounting conservatism. This piece of finding further implies that the internal control system decided by the board could be the means via which CEO realizes less conservative principles. Contributions, limitations, and implications to corporate governance as well as security exchange commission are also discussed.

Keywords: CEO-board social tie; Internal control quality; Accounting conservatism; Mediating effects (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1062940820300693
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecofin:v:52:y:2020:i:c:s1062940820300693

DOI: 10.1016/j.najef.2020.101172

Access Statistics for this article

The North American Journal of Economics and Finance is currently edited by Hamid Beladi

More articles in The North American Journal of Economics and Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().