The influence of independence and compensation of the directors on family firms and real earnings management

This study investigates real earnings management in family firms and further examines the moderating effects of independence compensation directors. Based on a sample 106 non-financial public listed over 5 years Saudi Arabia, empirical results show that are positively linked to management. result supports entrenchment hypothesis have lower quality due manipulation activities. Further, we found evidence proportion independent directors paid both interacted reduce Our findings suggest increasing paying higher one workable way for mitigate their behaviour.