Foreign Experienced CEOs’ and Financial Statement Comparability

This research examines whether the characteristics of top management teams are related to financial statement comparability. Considering foreign experienced CEOs (FCEOs) in Chinese listed firms from 2005 2018, we show that it can increase We argue led by FCEOs will enhance information environment and governance mechanisms minimizing agency issues, consequently generating more comparable statements. Through further investigation, find relationship between comparability is stronger when possess a accounting background they have overseas professional experiences. fthe weaker with existence higher economic policy uncertainty. Finally, identify reporting as an important channel explains Findings remain consistent after numerous robustness checks supplementary investigations comprising lag independent variables, generalized method moment, instrumental variable approach, propensity score matching, alternative measures. Overall, findings suggest CEOs’ experiences associated corporate outcomes.