The effect of male CEO masculinity face on earnings management: Evidence from Indonesia

Figures & data

Table

Description

NDAit= Non discretionary accruals of the corporation i in the period of years t

TACit= Total accruals of the corporation i in the time/period t

NIit= Net profit of the corporation i in the time/period of years t

CFOit= Corporation’s operating cash flow in year t

Ait-1= Total assets of corporation i in the time/period t-1

∆Revit= The revenue of the corporation i in year t is reduced by the revenue company I in year t-1

PPEit= Fixed assets of the corporation i in the time/period t

DAit= Discretionary accruals of the corporation i in the time/period to t

∆Recit= Accounts receivable of the corporation i in year t minus the income of the corporation i in year t-1

ε= Error

Table

Description:
DAit	= Discretionary accruals of company i in period t
NDAit	= Nondiscretionary Accruals of company i in year period t
TACit	= Total accruals of company i in period t
NIit	= Net profit of company i in year period t
CFOit	= Cash flows from operating activities of company i in year period t
Ait-1	= Total assets of company i in period t-1
∆Revit	= Company i’s revenue in year t is reduced by company i’s revenue in year t-1
PPEit	= Fixed assets of company i in period t
∆Recit	= Accounts receivable of company i in year t minus the income of company i in year t-1
ROAit	= Return on assets of company i in period t
ε	= Error

Figure 1. Research Conceptual Framework.

Figure 2. Male CEO Masculinity Face Measurements (fWHR).

Table

Description
Horizontal line	Represents the maximum distance between the left and right cheeks.
Vertical Line	Represents the distance between the upper lip to the highest point of the eyelid

Table

Description:
DAit	= Discretionary accruals of company i in period t
NDAit	= Nondiscretionary Accruals of company i in year period t
TACit	= Total accruals of company i in period t
NIit	= Net profit of company i in year period t
CFOit	= Cash Flows from operating activities of company i in year period t
Ait-1	= Total assets of company i in period t-1
∆Revit	= Company i’s revenue in year t is reduced by revenue company i in year t-1
PPEit	= Fixed assets of company i in period t
∆Recit	= Accounts receivable of company i in year t minus the income of company i in year t-1
ROAit	= Return on assets of company i in period t
ε	= Error

Table

Description
Return on asseti,t	= Return on assets of company i in year t
Net profiti,t	= Net profit of company i in year t
Total asseti,t	= Total assets of company i in year t

Table

Description:
Research & Developmenti,t	=	Research & development i in year t
Total Research & Development Expenditurei,t	=	Total Research & Development Expenditure i in year t
Salesi,t	=	Sales i in year t

Table

Description:
Leveragei,t	=	Leverage i in year t
Total Liabilitasi,t	=	Total liabilities of company i in year t
Total Aseti,t	=	Total assets of company i in year t

Table 1. Variable Description

Information	Description
i	Company cross-section data
t	Company time-series data
EM	Earnings Management
fWHR	The Facial Masculinity of a Male CEO
Size	Company Size
ROA	Profitability
R&D	Research & Development
LEV	Leverage
α	Constanta
β1, β2, β3	Coefisien regresion variable EM, fWHR, control, Size, ROA, R&D, LEV
є	Error

Table 2. Descriptive Statistics

Variables Dependent	Obs	Mean	Std. Dev.	Min	Max	p1	p99	Skew.	Kurt.
Earnings Management	1925	.003	.007	000	.046	000	.036	3.132	12.117
Variables Independent	Obs	Mean	Std. Dev.	Min	Max	p1	p99	Skew.	Kurt.
fWHR	1781	2.086	6.287	.110	267	1.34	2.79	42.038	1771.784
Variables Independent	Obs	Mean	Std. Dev.	Min	Max	p1	p99	Skew.	Kurt.
Size	1925	23.12	5.011	11.862	31.592	12.927	30.952	−.269	1.746
ROA	1925	.078	.108	000	.925	.001	.528	3.626	20.785
R&D	1925	15.234	2.549	6.234	21.802	6.491	21.797	−.190	4.575
Leverage	1925	.482	.246	000	.990	.010	.930	−.041	2.107

Table 3. Pearson Correlation Test

Variables	(1)	(2)		(3)	(4)	(5)	(6)
(1) Earnings Management	1.000
(2) fWHR	0.059	1.000
	(0.013)
(3) Size	−0.055	−0.038		1.000
	(0.016)	(0.104)
(4) ROA	−0.042	0.001		−0.077	1.000
	(0.068)	(0.953)		(0.001)
(5) R&D	0.001	−0.086		−0.206	0.246	1.000
	(0.985)	(0.278)		(0.007)	(0.001)
(6) Leverage	0.111	0.006		−0.189	−0.147	0.151	1.000
	(0.000)	(0.809)		(0.000)	(0.000)	(0.049)
Variables	(1)	(2)		(3)	(4)	(5)	(6)
(1) Earnings Management	1.000
(2) fWHR	0.059	1.000
(3) Size	−0.055	−0.038		1.000
(4) ROA	−0.042	0.001		−0.077*	1.000
(5) R&D	0.001	−0.086		−0.206*	0.246*	1.000
(6) Leverage	0.111*	0.006		−0.189*	−0.147*	0.151	1.000

*** p < 0.01, ** p < 0.05, * p < 0.1

Table 4. Goodness-of-Fit Model Testing

	(Model OLS)	(Model FE)	(Model RE)	(Model Robust)
	Earnings Management	Earnings Management	Earnings Management	Earnings Management
fWHR	.006**	.006**	.006**	.006**
	(.003)	(.003)	(.003)	(.002)
Size	0***	−.001*	0**	0***
	(0)	(.001)	(0)	(0)
ROA	.009**	.01**	.009**	.009***
	(.004)	(.004)	(.004)	(.003)
R&D	0	−.001*	0	0
	(0)	(.001)	(0)	(0)
Leverage	.004*	.001	.002	.004
	(.002)	(.003)	(.002)	(.003)
_cons	−.002	.04**	.007	−.002
	(.008)	(.018)	(.009)	(.006)
Observations	1925	1925	1925	1925
R-squared	.139	.085	.z	.139

Standard errors are in parentheses *** p < .01, ** p < .05, * p < .1

Data Availability Statement

The study did not involve any data sets and the articles collected were sourced from https://www.scopus.com/home.uri, accessed on 2022 and https://scholar.google.com/, accessed on 2022.