Title: The relationship between CEO's reputation and firm abnormal earnings - evidence from Vietnam

Authors: Nguyen-Quynh-Nhu Ngo

Addresses: Faculty of Finance and Banking, Ton Duc Thang University, Ho Chi Minh City, Vietnam

Abstract: The study explores the intersection between a CEO's reputation and the manipulation of firm abnormal earnings within the context of Vietnam. Drawing upon data derived from 1,959 observations encompassing 602 CEOs and 23 firms within Vietnamese listed companies from 2004 to 2021, the findings affirm a reciprocal relationship between a CEO's image and corporate abnormal earnings. A one-unit augmentation in corporate abnormal earnings during the current fiscal year corresponds to an 11.77-fold increase in the CEO's reputation within the same year. Conversely, a one-unit increase in the CEO's reputation during the current fiscal year results in a 0.02773-fold decrease in corporate abnormal earnings in the subsequent year. These research discoveries offer valuable insights into the repercussions of income manipulation and a CEO's heightened prominence within the business environment.

Keywords: corporate abnormal earnings; earnings management; real earnings; accrual earnings; CEO's reputation; CEO celebrity; CEO image; CEO identity; Vietnam; generalised least square; GLS.

DOI: 10.1504/JIBED.2024.139130

Journal for International Business and Entrepreneurship Development, 2024 Vol.16 No.1, pp.142 - 162

Received: 22 Dec 2023
Accepted: 14 Mar 2024
Published online: 14 Jun 2024 *

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