Title of Submission
Managerial Ability and Financial Statement Comparability
Start Date
14-10-2022 10:45 AM
End Date
14-10-2022 12:00 PM
Location
Discovery Hall 213
Submission Type
Competitive Paper
Track
Accounting and Finance
Abstract
This study examines the relationship between managerial ability and financial statement comparability. We find that accounting comparability is associated with managerial ability. Specifically, firm-pairs by industry-year with similar managerial ability are associated with more comparable financial statements. We also find that firm-pairs with similarly low-level ability managers are associated with more comparable earnings than firm-pairs with similarly high-level ability managers. Overall, the results suggest that managers can impact the comparability of earnings and that less able managers are associated with more comparable financial statements.
Included in
Managerial Ability and Financial Statement Comparability
Discovery Hall 213
This study examines the relationship between managerial ability and financial statement comparability. We find that accounting comparability is associated with managerial ability. Specifically, firm-pairs by industry-year with similar managerial ability are associated with more comparable financial statements. We also find that firm-pairs with similarly low-level ability managers are associated with more comparable earnings than firm-pairs with similarly high-level ability managers. Overall, the results suggest that managers can impact the comparability of earnings and that less able managers are associated with more comparable financial statements.
