Iman Harymawan, - and Mohammad Nasih, - and Nadia Klarita Rahayu, ,- and Khairul Anuar Kamarudin, - and Wan Adibah Wan Ismail, - (2022) Busy CEOs and financial reporting quality: evidence from Indonesia. Asian Review of Accounting, 30 (3). pp. 314-337. ISSN 1321-7348

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Abstract

Purpose This study aims to examine the relationship between CEO busyness and financial reporting quality in a country which implements a two-tier board system. Design/methodology/approach This study includes firms listed on the Indonesian Stock Exchange during the 2010–2018 period. This study employs an ordinary least squares regression, the propensity score matching procedure, and a Heckman two-stage regression in testing the hypothesis. Findings This study finds that firms with busy directors have a higher financial reporting quality, and these results are robust to a battery or sensitivity analysis. The additional analyses also find that a busy CEO is negatively associated with the firm's financial reporting quality with decreasing income. Practical implications This paper provides implications for policy-makers in the emerging market on devising policies on CEOs' appointments, especially when involving multiple directorships. Despite the general belief on the detrimental workload effects of busy directors, this study offers evidence supporting the opposite effect. Originality/value As many previous studies focused on the effect of director busyness on firm’s performance, this study focusses on the effect of CEO busyness on financial reporting quality. To the best of our knowledge, this study is the first to investigate this issue in an emerging market.

Item Type:	Article
Uncontrolled Keywords:	Busy CEO, Financial reporting quality, Governance, Multiple directorships
Subjects:	H Social Sciences H Social Sciences > HG Finance
Divisions:	04. Fakultas Ekonomi dan Bisnis > Akuntansi 04. Fakultas Ekonomi dan Bisnis > Doktoral Ilmu Akuntansi
Creators:	Creators NIM Iman Harymawan, - NIDN0020048403 Mohammad Nasih, - NIDN0006086503 Nadia Klarita Rahayu, ,- NIM041511333150 Khairul Anuar Kamarudin, - UNSPECIFIED Wan Adibah Wan Ismail, - UNSPECIFIED
Depositing User:	Tn Sugeng Riyanto
Date Deposited:	16 Jun 2023 04:26
Last Modified:	16 Jun 2023 04:26
URI:	http://repository.unair.ac.id/id/eprint/127407
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