The Impact Of The CEO's Overseas Experience On Earnings Management

As the scale of China's capital market continues to expand,the number of investors continues to increase,and the quality of accounting information caused by the misconduct of corporate executives has aroused widespread concern.Under the background of the continuous improvement of the domestic legal system and the continuous improvement of market rules,listed companies have gradually shifted from direct financial fraud to earnings management that is less likely to be discovered.This has greatly increased the risk of investors,especially small and medium investors who lack professional knowledge and information channels.At the same time,more and more talents with overseas experience have returned to domestic work,and quite a few of them have entered listed companies and served as senior executives,becoming a group that cannot be ignored in China's capital market.CEOs have a decisive influence on company decision-making.Therefore,it is of great practical significance to study the impact of CEOs with overseas experience on corporate earnings management.Based on upper echelons theory,attention-based view and imprinting theory,this paper analyzes the characteristics of CEOs with overseas experience in the company's operation and its possible impact on the earnings management of listed companies.Then,the example of GOERTEK is taken.It analyzes the impact of the new CEO's overseas background on itself and the impact of the new CEO on the company's earnings management.Taking the information technology industry listed companies with similar scales in the Shanghai and Shenzhen stock markets in 2011-2016 as a sample,using the modified Jones model and the Roychowdhury model,we calculated the accrued earnings of GOERTEK three years before and after the new CEO took office.Management and real earnings management,and compare it with the median and average of the industry,as well as the degree of accrued earnings management and the degree of real earnings management of the same industry chain.The study found that after three years of taking office,the CEO's accrued earnings management and real earnings management declined,indicating that the CEO with overseas experience had an accrued earnings management and real surplus for GOERTEK.Management has produced a suppression effect.Finally,this paper proposes to the relevant departments to increase the introduction of overseas talents,improve the rule of law environment,and raise the level of higher education.