CEO duality, CEO nationality and firm financial performance in France: the moderating role of accruals earnings management

Purpose The present work aimed to examine the moderating role of accruals earnings management (AEM) in the relationships between chief executive officer (CEO) duality, CEO nationality, and firm financial performance. Design/methodology/approach Our sample consisted of French firms listed on the CAC All Shares index between 2014 and 2023. Financial companies were excluded due to their atypical financial reporting practices. We also removed firms lacking complete annual reports or sufficient CEO-related data. The data were analyzed using panel regression analysis. Findings Based on a panel data set comprising 1,510 observations of French firms from 2014 to 2023, the results obtained reveal a significant negative relationship between CEO duality and firm financial performance. However, a significant positive relationship was observed between the nationality of the CEO and the firm's financial performance. Furthermore, it was found that AEM moderates the relationships between CEO duality, CEO nationality and firm financial performance. Thus, it can be concluded that CEO nationality seems to improve firm performance; Moreover, this performance is further enhanced in the presence of earnings management. Originality/value There is a notable lack of research on the influence of CEO nationality on firm financial performance in the French context. This study provides empirical insights into how CEO nationality affects firm financial performance and how AEM moderates these relationships.