CEO traits and discretionary accruals: empirical evidence from Saudi Arabia companies

This study examines the connection between chief executive officer (CEO) traits and earnings management practices as estimated by discretionary accruals (DAs). To accomplish this, we analysed data from 134 companies listed on the Tadawul Exchange from 2019 to 2022. We also employed an appropriate analytical method and conducted robustness tests to ensure the reliability of the findings. Our paper's findings indicated that tenure in the COE, CEO compensation, CEO board membership, and COE ownership are all positively influenced by DAs. On the other hand, our results showed that CEO financial expertise has a negative impact on DAs. Interestingly, our study did not uncover any evidence of a link between CEO Founder status or nationality and DAs. The outcomes contribute significantly to offering investors a comprehensive understanding of the extent of DAs practices in Saudi firms and identifying the specific CEO traits that encourage such activities.