讲座题目：Executive Integrity and Accounting Irregularities
主 说话 人口：Jianchuan Luo授课
主 拿 人口：李亚静讲课
Dr. Luo Jianchuan joined The Hong Kong Polytechnic University as an assistant professor in July 2016.
Dr. Luo conducts research on financial accounting and corporate governance. Currently, his work primarily focuses on companies' voluntary investment disclosure. He teaches financial accounting and management accounting.
Dr. Luo earned his bachelor's degree in Agricultural Economics from Renmin University of China, his M.S. in Applied Economics and Management from Cornell University, and his Ph.D. in Accounting from The Stern School of New York University.
This paper uses paid membership to a website facilitating extramarital affairs as a proxy for a lack of integrity and finds that when executives lack integrity, their firms’ financial statements are more likely to be restated. The likelihood of restatement is higher when executives are CEOs. Executives attempting to disguise their membership to the website mitigate the likelihood of restatement, but mitigation is qualified. Restatements cluster around a few issues, with executive compensation being one of the strongest. Executives who lack integrity also contribute to ineffective internal controls, material weaknesses, and more security lawsuits, but do not affect profitability or other discretionary choices. When executives’ lack of integrity is revealed, the stock price of these executives’ firm declines. Their careers, however, do not appear to be affected.