The relationship between the characteristics of the CEO and the restatement of financial statements with an emphasis on the moderating role of corporate governance mechanisms

Souri, Ali; Zonobi, Arsalan

doi:10.48301/kssa.2023.376783.2382

The relationship between the characteristics of the CEO and the restatement of financial statements with an emphasis on the moderating role of corporate governance mechanisms

Document Type : Original Article

Authors

Ali Souri ¹

arsalan zonobi ²

¹ Department of Financial Management and Accounting, Faculty of Management and Accounting, Qom, Iran

² Department of Accounting, Islamic Branch Azad University, Roudhen, Iran

10.48301/kssa.2023.376783.2382

Abstract

This research deals with the relationship between the CEO's characteristics and financial statement renewal with emphasis on the moderating role of management mechanisms of acquired companies in the Tehran Stock Exchange. In this regard, the data of 96 companies admitted to the Tehran Stock Exchange for the period 2015-2016 have been tested. To check the significance of the hypothesis test, ordinary square regression method was used. The results showed that among the personal characteristics of the CEO, including age, tenure and knowledge of the CEO, only tenure and overconfidence of the CEO have a positive and significant effect on the value of the company; And no significant relationship was found between age and management knowledge with company value. The results of this research showed that there is a direct relationship between the tenure of the chairman of the board of directors and the CEO of the company with added economic value and the wealth created for the shareholders, and strong corporate governance strengthens the effect of the individual characteristics of the CEO on the value of the company. to be Also, the secondary findings of this research show that company value has an inverse relationship with company size and has a direct and significant relationship with sales growth and leverage ratio. Also, no significant relationship was found between the dual role of the CEO and the chairman of the board of directors.

Keywords

Restatement of financial statements

Tenure of the CEO

Upper echelons theory

Subjects