Exemplary Outsiders?: Immigrant CEOs and Financial Misrepresentation

Michael Mueller; Taco H. Reus

doi:10.5465/AMBPP.2022.78

Exemplary Outsiders? Immigrant CEOs and Financial Misrepresentation

Michael Mueller^*, Taco H. Reus

^*Corresponding author for this work

Department of International Economics, Government and Business

Erasmus University Rotterdam

Research output: Chapter in Book/Report/Conference proceeding › Conference abstract in proceedings › Research › peer-review

Abstract

We examine the role of CEOs' national origins on financial misrepresentation. Building on the economic theory of crime, we propose that, because immigrant CEOs are subject to more scrutiny and face more severe punishment in case of misconduct, immigrant CEOs will be less likely to misrepresent their firms’ financial results. We find evidence for this proposition for a sample of US-headquartered Information and Communications Technology firms that went public between 2000 and 2015. Specifically, we find that firms with an immigrant CEO have a lower likelihood of financial misrepresentation than native-led firms, particularly when immigrant CEOs are also their firm’s founders. Our paper contributes to research on corporate misconduct, immigrant entrepreneurship, and the broader discussion on the relationship between immigration and crime.

Original language	English
Title of host publication	Proceedings of the Eighty-second Annual Meeting of the Academy of Management
Editors	Sonja Taneja
Number of pages	6
Place of Publication	Briarcliff Manor, NY
Publisher	Academy of Management
Publication date	2022
Article number	78
DOIs	https://doi.org/10.5465/AMBPP.2022.78
Publication status	Published - 2022
Event	The Academy of Management Annual Meeting 2022: Creating a Better World Together - Seattle, United States Duration: 5 Aug 2022 → 9 Aug 2022 Conference number: 82 https://2022.aom.org/

Conference

Conference	The Academy of Management Annual Meeting 2022
Number	82
Country/Territory	United States
City	Seattle
Period	05/08/2022 → 09/08/2022
Internet address	https://2022.aom.org/

Series	Academy of Management Proceedings
ISSN	0065-0668

Keywords

AOM annual meeting proceedings 2022
AOM Seattle 2022
Best paper

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This output contributes to the following UN Sustainable Development Goals (SDGs)

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Cite this

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title = "Exemplary Outsiders?: Immigrant CEOs and Financial Misrepresentation",

abstract = "We examine the role of CEOs' national origins on financial misrepresentation. Building on the economic theory of crime, we propose that, because immigrant CEOs are subject to more scrutiny and face more severe punishment in case of misconduct, immigrant CEOs will be less likely to misrepresent their firms{\textquoteright} financial results. We find evidence for this proposition for a sample of US-headquartered Information and Communications Technology firms that went public between 2000 and 2015. Specifically, we find that firms with an immigrant CEO have a lower likelihood of financial misrepresentation than native-led firms, particularly when immigrant CEOs are also their firm{\textquoteright}s founders. Our paper contributes to research on corporate misconduct, immigrant entrepreneurship, and the broader discussion on the relationship between immigration and crime.",

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Mueller, M & Reus, TH 2022, Exemplary Outsiders? Immigrant CEOs and Financial Misrepresentation. in S Taneja (ed.), Proceedings of the Eighty-second Annual Meeting of the Academy of Management., 78, Academy of Management, Briarcliff Manor, NY, Academy of Management Proceedings, The Academy of Management Annual Meeting 2022, Seattle, Washington, United States, 05/08/2022. https://doi.org/10.5465/AMBPP.2022.78

Exemplary Outsiders? Immigrant CEOs and Financial Misrepresentation. / Mueller, Michael; Reus, Taco H.
Proceedings of the Eighty-second Annual Meeting of the Academy of Management. ed. / Sonja Taneja. Briarcliff Manor, NY: Academy of Management, 2022. 78 (Academy of Management Proceedings).

Research output: Chapter in Book/Report/Conference proceeding › Conference abstract in proceedings › Research › peer-review

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