Do CEO Attributes Spur Conservatism?

Rawan Atwa (), Safaa Alsmadi, Buthiena Kharabsheh and Ruwaidah Haddad
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Rawan Atwa: Faculty of Business, Accounting Department, Yarmouk University, P.O. Box 566, Irbid 21163, Jordan
Safaa Alsmadi: Faculty of Business, Accounting Department, Yarmouk University, P.O. Box 566, Irbid 21163, Jordan
Buthiena Kharabsheh: Faculty of Business, Finance Department, Yarmouk University, P.O. Box 566, Irbid 21163, Jordan
Ruwaidah Haddad: Faculty of Business, Accounting Department, Yarmouk University, P.O. Box 566, Irbid 21163, Jordan

IJFS, 2023, vol. 11, issue 1, 1-15

Abstract: This study examines the relationship between chief executive officers’ (CEOs’) characteristics (e.g., tenure, experience, education, age and compensation) and accounting conservatism for a sample of 672 yearly observations from both Jordanian industrial and service companies listed on the Amman Stock Exchange (ASE) during the period 2014–2021. Using feasible generalised least squares, the results show that CEOs with more experience and skills are positively and significantly related to accounting conservatism. Furthermore, consistent with upper-echelon-theory arguments, the findings reveal that CEO tenure is significantly and positively associated with the level of accounting conservatism. The results indicate that CEOs’ education, age and compensation are positively but insignificantly related to accounting conservatism. Overall, this study contributes to the literature by providing evidence of the importance of recognising the effects of CEOs’ characteristics on influencing accounting conservatism in Jordanian industrial and service companies.

Keywords: CEO characteristics; accounting conservatism; Jordan; Amman Stock Exchange (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2023
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