Chief risk officer e gerenciamento de resultados na indústria bancária dos Estados Unidos da América

Abstract

We study the relationship between earnings management and CRO. ERM provides companies with an integrated system that combines management and value creation, which can bring several benefits to companies that adopt it. In this process, the figure of the CRO is an essential element. One of the benefits that the presence of the CRO can bring to companies is the attenuation of information asymmetry. The asymmetry of information existing between company managers and stakeholders or users of accounting information gives rise to Earnings Management. The presence of a CRO is expected to be associated with lesser engagement by US banks in earnings management practices. We use data from publicly traded US banks from 2008 to 2018 and our results suggest that the presence of a CRO is significantly and positively associated with the earnings management metric.