Date of Award


Document Type


Degree Name

Doctor of Business Administration (DBA)


Economics and Finance

First Advisor

William R. McCumber


This study investigates the relationship between CEO network centrality, choice of earnings management, and the consequences for the period from 1998 to 2016. From our empirical analysis, we find that CEOs with higher network centrality are more likely to use accruals-based earnings management, but less likely to use real earnings management to manage earnings upward in the current year. Although the use of accruals-based earnings management normally results in bad economic consequences for firms, CEO network centrality is associated with better (at least not worse) earnings quality, after controlling the use of accruals-based earnings management. As for longterm economic performance, we find that CEO network centrality is related to the future growth of profitability that is not accurately forecasted by analysts, so therefore, the firms with higher CEO network centrality have positive, long-term market reactions. To sum up, we find that CEOs with higher network centrality have flexibility to take risk (by using certain form of earnings management). However, with their abilities (by choosing earnings management that fit the firms’ situation or handling the earnings management within a certain range), the general outcomes (earnings quality and long-term economic performance) are not bad.

Signature Page - Huan Qiu.pdf (269 kB)
Signature Page Signed