International Journal of Scientific & Technology Research

Home About Us Scope Editorial Board Blog/Latest News Contact Us
10th percentile
Powered by  Scopus
Scopus coverage:
Nov 2018 to May 2020


IJSTR >> Volume 8 - Issue 10, October 2019 Edition

International Journal of Scientific & Technology Research  
International Journal of Scientific & Technology Research

Website: http://www.ijstr.org

ISSN 2277-8616

The Impact of CEO Characteristics on Earnings Per Share and Earnings Management

[Full Text]



Eufrasia Acintya Putri, Toto Rusmanto



CEO Characteristics, Earnings Per Share, Earnings Management



The purposes of research were to examine the effect of Chief Executive Officer (CEO) characteristics’ on earnings per share (EPS) and earnings management. The research samples are 104 manufacture companies listed in the Indonesian Stock Exchange 2013-2017. Hypotheses test use multiple regression. The result shows that CEO's narcissism, education, age, tenure, and nationality have an effect on EPS, while CEO's gender has no effect on EPS. CEO's narcissism and education have a positive effect on accrual earnings management, while CEO's gender and nationality have a negative effect on accrual earnings management to manage EPS. CEO's age and tenure have no effect on accrual earnings management. CEO's narcissism has a positive effect on real earnings management; while CEO's gender, education, tenure, and nationality have a negative effect on real earnings management to manage EPS. CEO's age has no effect on real earnings management.



[1] K. J. Olsen, K. K. Dworkis and S. M. Young, “CEO Narcissism and Accounting: A Picture of Profits,” Journal of Management Accounting Research, vol. 26, no. 2, pp. 243-267, 2014.
[2] C. J. Resick, D. S. Whitman, S. M. Weingarden, and N. J. Hiller, “he Bright Side and the Dark Side of CEO Personality: Examining Core Self-evaluations, Narcissism, Transformational Leadership, and Strategic Influence,” Journal of Applied Psychology, vol. 94, no. 6, pp. 1365-1381, 2009.
[3] M. A. Wani and A. Masih, “Emotional Maturity accross Gender and Level of Education,” The International Journal of Indian Psychology, vol. 2, no. 2, pp. 63-72, 2015.
[4] R. Croson and U. Gneezy, “Gender differences in preferences,” Journal of Economic Literature, vol. 47, no. 2, pp. 448-474, 2009.
[5] M. N. Ruderman, P. J. Ohlott, K. Panzer and S. N. King, “Benefits of Multiple Roles for Managerial Women,” Academy of Management Journal, vol. 45, no. 2, pp. 369-386, 2002.
[6] G. Anggraeni, F. T. Kristanti and M. Muslih, “Pengaruh Intelectual Capital, Gender Diversity, Age Diversity, dan Tenure Diversity terhadap Kinerja Keuangan Perusahaan,” Proc. e-Proceeding of Management, vol. 3, no. 2, pp. 1656-1664, 2016.
[7] D. C. Hambric, “Upper echelons theory: An update,” The Academy of Management Review, vol. 32, no. 2, pp. 334-343, 2007.
[8] A. Davila and G. Foster, “Management Control System in Early-Stage Startup Companies,” The Accounting Review, vol. 82, no. 4, pp. 907-937, 2007.
[9] B. Qi, J. W. Lin, G. Tian, and H. C. X. Lewis, “The Impact of Top Management Team Characteristics on the Choice of Earnings Management Strategies: Evidence from China,” Accounting Horizons, vol. 32, no. 1, pp. 143-164, 2018.
[10] E. Peni, “CEO and Chairperson Characteristics and Firm Performance,” Journal of Management & Governance, no.18, pp. 185-205, 2014.
[11] L.Q. Wei, C. M. Lau, M. N. Young and Z. Wang, “The Impact of Top Management Team Demography on Firm Performance in China,” Asian Business & Management, vol. 4, pp. 227-250, 2005.
[12] R. Shakir, “Examining the Effect of Leadership Structure and CEO Tenure on Malaysian Property Firm Performance,” Journal of Real Estate Literature, vol. 17, no. 1, pp. 45-62, 2009.
[13] A. O. Enofe, C. Iyafekhe, and J. O. Eniola, “Board Ethnicity, Gender Diversity, and Earnings Management: Evidence from Quoted Firms in Nigeria,” International Journal of Economics, Commerce and Management, vol. 5, no. 6, pp. 78-90, 2017.
[14] S. Le and M. Kroll, “CEO International Experience: Effects on Strategic Change and Firm Performance,” Journal of International Business Studies, no. 48, pp. 573-595, 2017.
[15] M. C. Jensen and W. H. Meckling, “Theory of The Firm: Managerial Behaviour, Agency Cost and Ownership Structure,” Journal of Financial Economics, vol. 3, no. 4, pp. 305-360, 1976.
[16] H. Ahmed and M. Azim, “Earnings Management Behavior: A Study on the Cement Industry of Bangladesh,” International Journal of Management, Accounting and Economics, vol. 2, no. 4, pp. 265-276, 2015.
[17] S. J. Rasmussen, “Revenue Recognition, Earnings Management, and Earnings Informativeness in the Semiconductor Industry,” Accounting Horizons, vol. 27, no. 1, pp. 91-112, 2013.
[18] P. M. Dechow, R. G. Sloan, and A. P. Sweeney, “Detecting Earnings Management,” The Accounting Review, vol. 70, no. 2, pp. 193-225, 1995.
[19] J. Hartono, Metodologi Penelitian Bisnis: Salah Kaprah dan Pengalaman-Pengalaman. [Business Research Methodology: Misinterpretations and Experiences]. Yogyakarta, Indonesia: BPFE UGM, 2010.