Gambling culture and earnings management: a novel perspective

Alharbi, Samar, Atawnah, Nader, Ali, Muhammad Jahangir and Eshraghi, Arman ORCID: https://orcid.org/0000-0002-7406-1725 2023. Gambling culture and earnings management: a novel perspective. International Review of Economics and Finance 86 10.1016/j.iref.2023.03.039

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Abstract

Do gambling preferences affect earnings management in a corporate context? We examine this potential link and find a positive and significant association between local gambling culture, as proxied by faith and firm-level earnings management. The results are robust to potential endogeneity tested through relocation of corporate headquarters and change regressions. We also show that the impact of local gambling preferences on earnings management is stronger when firms are more risk-taking as proxied by higher earnings volatility. Further, this positive association between gambling preferences and earnings management is mitigated by closer monitoring through institutional investors and takeover threats.

Item Type:	Article
Date Type:	Published Online
Status:	Published
Schools:	Business (Including Economics)
Subjects:	H Social Sciences > HG Finance
Publisher:	Elsevier
ISSN:	1059-0560
Date of First Compliant Deposit:	12 April 2023
Date of Acceptance:	31 March 2023
Last Modified:	05 Apr 2024 01:30
URI:	https://orca.cardiff.ac.uk/id/eprint/158414

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