Does ownership concentration matter for the relationship between CEO characteristics and real earnings management: evidence from Jordan

What is it about?

Although there are some studies analysing the impact of CEO attributes on REM, most of this prior research has been primarily carried out in western or relatively developed nations. Moreover, the results of the studies are asserted, and there is no clear conclusion as to how CEO attributes may affect REM. We add to this strand of literature by offering evidence that some CEO characteristics increase the likelihood of the REM being practised in Jordan, a jurisdiction with weak investor preservation, poor corporate governance mechanisms, and a great level of OC. Furthermore, the existing body of research has not yet adequately investigated the aspect of OC as a moderator in the connection between CEO characteristics and REM. We participate in the existing line of research by taking into account OC as a moderator in the relationship to provide imperative insights regarding the influence of CEO characteristics and OC in an EM context. We found that OC is a vital aspect that should be considered when investigating the connotation between CEO attributes and REM.

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