The Emergence of Corporate Governance from Wall St. to Main St.: Outside Directors, Board Diversity, Earnings Management, and Managerial Incentives to Bear Risk

CFA Digest ◽  
2003 ◽  
Vol 33 (3) ◽  
pp. 24-25
Author(s):  
Ann C. Logue
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Managerial Incentives ◽  
Outside Directors ◽  
Board Diversity

scholarly journals Pengaruh Board Diversity Pada Nilai Perusahaan Dalam Perspektif Corporate Governance

2019 ◽  
pp. 2070 ◽  
Author(s):  
Ni Luh Putu Purna Yogiswari ◽  
I Dewa Nyoman Badera
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Educational Background ◽  
Manufacturing Companies ◽  
Outside Directors ◽  
Board Diversity ◽  
Chemical Manufacturing ◽  
Nationality Diversity

Board composition is one particular issue regarding corporate governance. This study aims to find empirical evidence regarding the effect of board diversity proxied by gender diversity, nationality diversity, educational background, and the proportion of outside directors on firm value. This research was conducted in basic industrial and chemical manufacturing companies listed on the Indonesia Stock Exchange with an observation period of 3 years, those of from 2015-2017. The method of determining the sample uses a purposive sampling. The sample of this study amounted to 39 companies with a total of 117 samples. Based on the results of the analysis, it can be concluded that gender diversity and the proportion of outside directors have no effect on firm value while there is a positive effect between nationality diversity and educational background on firm value. Keywords: Board diversity, corporate governance, and firm value.

scholarly journals The Effects of Corporate Governance Practices on the Choice between Efficient and Opportunistic Earnings Management

2016 ◽  
Vol 11 (9) ◽  
pp. 1
Author(s):  
Tim Vervaat ◽  
Georgios Georgakopoulos ◽  
Konstantinos Z. Vasileiou ◽  
Ioannis Sotiropoulos
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Audit Quality ◽  
Audit Fees ◽  
Audit Committees ◽  
Outside Directors ◽  
Study Results ◽  
Governance Practices ◽  
The Impact

This study aims to explore the preferences of the publicly listed companies on the S&P 500 index regarding their earnings management (efficient or opportunistic) as well as the impact of the corporate governance practices (audit committee, board independence and audit quality) on their decision. Using two separate regression models, it was found that American firms listed on the S&P 500 index tend to conduct efficient earnings management, which is in line with the findings of prior research. Moreover, it emerged that the earnings management selection does not depend on the amount (high vs small) of audit fees paid by the companies. Additionally, the governance practice of employing more outside directors in the audit committees leads to more efficient earnings management. Finally, according to the study results, the impact of discretionary accruals on future profitability is not significantly related to the proportion of independent members on the board of directors.

scholarly journals The effect of the mandatory adoption of IAS/IFRS on earnings management: Empirical evidence from South Africa

2016 ◽  
Vol 4 (2) ◽  
pp. 87 ◽  
Author(s):  
Yosra Mnif Sellami ◽  
Imen Slimi
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
South African ◽  
Discretionary Accruals ◽  
Accounting Quality ◽  
Outside Directors ◽  
Ifrs Adoption ◽  
Corporate Governance Mechanisms ◽  
Quality Of Accounting Information ◽  
Mandatory Adoption

This research investigates the effect of mandatory transition of South African companies to IFRS on earnings management, essential attribute of accounting quality. Specifically, the study examines whether the mandatory adoption of IFRS is associated with reduction of earnings management and therefore, an improvement of accounting quality. In addition, the paper focuses on the effect of corporate governance factors on earnings management.Earnings management is assessed by the magnitude of discretionary accruals and accruals quality. The paper compares earnings management in the pre-mandatory IFRS adoption period; 2002-2004 and the post IFRS adoption period; 2010-2012. This study focuses on a sample of 276 firm-year observations, 46 firms drawn from the 413 South African listed companies. A regression model was applied to examine the relation between mandatory adoption of IFRS, corporate governance mechanisms and discretionary accruals controlling for other some factors explaining earnings management.Our findings show that mandatory adoption of IFRS by South African companies is associated with lower earnings management. This result suggests that mandatory transition to IFRS contribute to an improvement in the quality of accounting information. Furthermore, results show that the percentage of independent outside directors, the separation of roles of CEO and Chairman of the board and company size have significant influence on reducing discretionary accruals.

scholarly journals The effects of board characteristics on earnings management

2004 ◽  
Vol 1 (3) ◽  
pp. 96-107 ◽  
Author(s):  
Lanfeng Kao ◽  
Anlin Chen
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Board Of Directors ◽  
Governance Mechanism ◽  
Group Affiliation ◽  
Outside Directors ◽  
Board Characteristics ◽  
The Board Of Directors ◽  
Corporate Governance Mechanism ◽  
The Relationship

This paper examines the relationship between board characteristics and earnings management. Management of a firm may engage in earnings management for his own benefit. However, under proper corporate governance mechanism, the board of directors might be able to monitor the firm and prevent the management from engaging in earnings management. We find that when the board size is large, the higher the extent of earnings management. However, when there are more outside directors in the board, the extent of earnings management is lower. The effects of board characteristics on earnings management are significant only for group affiliation firms or non-electronic firms.

Corporate Governance, Board Diversity, and Firm Value

CFA Digest ◽  
2003 ◽  
Vol 33 (3) ◽  
pp. 22-23
Author(s):  
Spencer L. Klein
Keyword(s):  
Corporate Governance ◽  
Firm Value ◽  
Board Diversity

HUBUNGAN BOARD DAN KOMITE AUDIT TERHADAP MANAJEMEN LABA

2010 ◽  
Author(s):  
Fivi Anggraini
Keyword(s):  
Corporate Governance ◽  
Moral Hazard ◽  
Earnings Management ◽  
Conflict Of Interest ◽  
Significant Relationship ◽  
Stock Exchange ◽  
Earning Management ◽  
Independent Directors ◽  
Relationship Of ◽  
The Relationship

Earnings management is the moral hazard problem of manager that adses because of the conflict of interest between the manager as agent and the stakeholder and the owner as principal. The behavior of earnings management will immediately influence the reported earning. The aims of this research at examining the relationship of board and audit committe to earnings management. The samples of this research is all of companies member Corporate Governance Perception Index (CGPI) in the years of 2003-2006 which were listed in Jakarta Stock Exchange. The results of this study show that (1) the proportion of independent directors on the board had not significant relationship to earning management, (2) competence of independent directors on the board had not significant relationship to earning management, (3) the size of board had significant relationship to earning management, (4) the proportion of independent directors on the audit committe had not significant relationship to earning management, and (5) competence of members of the audit committe had significant relationship to earning management.

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