CEO mandate and age in the comparability of financial statements

• Main Author: Sousa, Allison Manoel de
• Publication Date: 2022
• Other Authors: Sousa, Rayane Camila da Silva, Colauto, Romualdo Douglas
• Format: Article
• Language: por
• Source: Revista Contemporânea de Contabilidade (Online)
• Download full: https://periodicos.ufsc.br/index.php/contabilidade/article/view/82153
• topic: Comparabilidad de los estados financieros; Mandato del CEO; Edad del CEO; Comparabilidade das demonstrações contábeis; Mandato do CEO; Idade do CEO; Comparability of accounting demonstrations; CEO mandate; CEO age

The present study analyses the influence of mandate time and Chief Executive Officer (CEO) age on comparability in Brazilian market publicly traded companies. In a yearly basis, 58 companies were analyzed from 2013 to 2019. Data were submitted to panel data regression which indicated mandate influences comparability in a positive way. It was also found that CEO age does not exert a direct influence on comparability although it is a personal characteristic acting indirectly as a moderator factor in the relation between mandate and comparability. Younger CEOs tend to decrease comparability of accounting information during their mandate. The study is important since it demonstrates that changes on accounting choices are more aggressive in the beginning and slow down as mandate increases. Another important aspect, in practical field, refers to the evidence that CEO age potentiates mandate influence on comparability.