Board Composition and Earnings Management an Empirical Evidence Form Pakistani Listed Companies
نویسندگان
چکیده
The study examines the relationship between Board Composition and Earnings Management. A set of listed Companies have been investigated to analyze the relationship for the year 2003 to 2007. Board Composition has been measured by Board independence, and Institutional ownership. Whereas earnings management has been quantified by discretionary accruals. Modified Cross Sectional Jones Model (1995) has been used to determine the Earnings management. Common effect model indicates the presence of negative relationship between institutional ownership and earnings management while we did not get statistically significant relationship between Board independence and earnings management.
منابع مشابه
Management Demographic Characteristics, Auditor Choice and Earnings Quality: Empirical Evidence from Iran
Recent accounting and management literature shows that demographic character-istics of top management and corporate performance are related. Accordingly, using a two-stage least squares regression model (2SLS), this study examines the relationship between some management demographic characteristics including CEO tenure, gender and level of education with earnings quality and auditor choice. Sam...
متن کاملCEO power and earnings announcement tone with emphasis on the role of board oversight
The value of earnings reporting depends on the information it provides to the capital market. In the meantime, managers with the power and control of the situation interfere not only in quantity but also in the quality of reporting, so they declare profit in a more positive tone. However, supervisory management leads to protecting shareholder interests and reducing agency problems, limiting the...
متن کاملImpact of Institutional Ownership and Board Independence on the Relationship Between Excess Free Cash Flow and Earnings Management
However, the free cash flows scale is important for the financial health of the company, but it has also its own limitations. Moreover, it’s not immune from accounting tricks. Free cash flows can be considered as a measure of value for shareholders of listed companies on Tehran Stock Exchange. The managers of these companies have tended to use the earnings management for managing the free cash ...
متن کاملThe Effect of the Characteristics of Board of Directors on Real Earnings Management
The purpose of this study is to evaluate the effect of the characteristics of board of directors (Chief Executive Officer Duality, CEO tenure duration, size and independence of the board of directors) on earnings management. In this study, data from 62 companies listed in the Tehran Stock Exchange during the years of 2011 to 2015 were used. The statistical method used in this research is panel ...
متن کاملEarnings Management and Dividend Policy An Empirical comparison between Pakistani Listed Companies and Chinese listed Companies
The study is an effort to fiind out the impact of earnings management on dividend payout policy for two coutries that is Pakistan and China. A set of listed Companies in both of the countries have been investigated to analyze the relationship for the year 2003 to 2007 in Pakistan and 2001 to 2007 in China. Dividend policy has been measured by dividend payout. Whereas earnings management has bee...
متن کامل