| Different CEOs have different styles due to differences in their professional background,education background,personal experience,age,etc.,and they also have different characteristics and preferences in their overall decision making.Ultimately,they make decisions through the coordination of the board of directors and the top management of the company about the corporate earnings management.At present,most of the existing researches have investigated CEO's impact on corporate performance or earnings management from the perspective of CEO as individual characteristics or CEO turnover.There is very little research on how CEOs influence corporate earnings management from the perspective of CEO embeddedness.Under this background,the study of the relationship between CEO internal and external network embedding and enterprise earnings management will help to find out what factors related to the CEO affect the enterprise's earnings management,and what factors can restrict the CEO's earnings management.Therefore,it can reduce the cost of entrusted agency,help to explore the cost of controlling the enterprise,maintain the stability of top management personnel,and win the deeper reasons for competitive advantages.At the same time,what kind of incentives related to the CEO can be found to enable the CEO to do his utmost to contribute his talents to the company.This is the question that this article will answer.Based on this,the paper uses the data of listed companies in the Shanghai and Shenzhen stock markets from 2014 to 2016 to study whether the embedded network characteristics of the CEO will affect the level of earnings management of the company,and specifically discusses how these different characteristics affect corporate earnings and the way it works.The results of empirical research show that the number of CEO years of service and the number of CEO positions experienced internally represent the CEO's internal embedded variables which are positively related to the level of corporate earnings management,the number of CEO external experiences and the CEO's national or provincial level Rewards These two variables that represent the internal embeddedness of the CEO are also positively related to the extent of corporate earnings management.This paper also studied the role of CEO's shareholding in the regulation of CEO internal and external network embedding and corporate earnings management.The study found that CEO's shareholding ratio negatively regulates the positive correlation between CEO's service life and corporate earnings management.The proportion of shares held negatively modifies the positive correlation between the number of positions held outside the CEO and the company's earnings management.However,there is no significant positive correlation between the number of CEO positions within the CEO and whether the CEO has obtained national or provincial awards and enterprise earnings management. |
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