Independent directors in Sweden and their influence on earnings through accrual and real activities management

The dominating perspective grounded in agency theory predicts that independent boards are more effective monitoring and thereby reducing earnings management, yet the extant empirical evidence is inconclusive. We nuance relationship between board independence management by introducing two additional theories explain directors’ role on board: of personal dependence praxis theory. According to theory, influence directors a function their competitiveness labor market, whereas attributes dominant coalition. focus dimensions ? accrual real activities account for both direction magnitude influence. Through an test 148 Swedish corporations from 2017, our findings indicate presence may not necessarily reduce management. Instead, be subject multiple sometimes conflicting task demands which differently Implications understanding presented