Document Type

Dissertation

Degree

Doctor of Business Administration

Major

Business Administration

Date of Defense

9-26-2023

Graduate Advisor

Michele Meckfessel, Ph.D.

Committee

Michele Meckfessel, Ph.D.

Thomas Kozloski, Ph.D.

Pamela Stuerke, Ph.D.

Abstract

CEO influence on non-GAAP earnings is a growing area of research. Risk-taking by CEOs is one way to gauge the extent of CEO influence on firm outcomes, especially non-GAAP earnings. This research examines the association between CEO sports hobbies, a proxy for CEO risk-taking, and their company’s non-GAAP earnings. In addition to the risk-proclivity of the CEO, non-GAAP earnings are the result of firm size, equity, return on assets, and changes in revenue. The extent of CEO influence was evaluated by a regression analysis of non-GAAP earnings using firm characteristics with CEO risk-taking measures and control variables such as CEO age, CEO gender, CEO tenure, and board independence. The results indicate that as SportsRisk increases, the likelihood of non-GAAP earnings that exceed GAAP earnings decreased. When the data was split into high and low-risk categories, the likelihood of non-GAAP earnings exceeding GAAP earnings was higher for those with high-risk activities, but the magnitude of non-GAAP exclusions was higher for the low-risk activities. Further, the data indicated that non-GAAP exclusions were more persistent for the low-risk activities.

Download

Included in

Accounting Commons

Share

COinS