scholarly journals Corporate Governance and Accounting Earnings Management: The Case of Tunisia

2019 ◽  
Vol 9 (4) ◽  
pp. 370
Author(s):  
Azhaar Lajmi ◽  
Wided Khiari ◽  
Khaled Kanzari
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Stock Exchange ◽  
Discretionary Accruals ◽  
Accounting Earnings ◽  
The Board Of Directors ◽  
Accounting Earnings Management ◽  
The Impact

This paper aims to test the impact of some corporate governance characteristics on the management of the accounting earnings measured by discretionary accruals. As for the prior research we treat the level of management of accounting earnings as a "proxy" for the quality of the accounting and financial information published by companies. Empirical analysis is based on the modified Jones model (1995) to estimate discretionary accruals and a panel data model applied to a sample of 21 companies listed on the Tunis Stock Exchange (BVMT) over a period of 3 years from 2008 to 2010. The main findings of the current study reveal that, in the Tunisian context, the affiliation of auditors to a "Big" international network and the independence of the board of directors significantly constrain the practice of managing the accounting earnings and, consequently, they improve the quality of the published result. However, the number of independent members in the audit committee has a negative but not significant impact on the practice of earnings management, whereas the duration of the audit mandate does not affect this practice.Finally, the control variables taken into account in our study have a significant effect on the quality of the accounting result.Thus, the results of this study helped to improve our understanding of earnings management in Tunisian companies, with reference to some characteristics of corporate governance.

scholarly journals The Impact of Corporate Governance and Ownership Structure on Earnings Management Practices: Evidence from Listed Companies in Pakistan

2014 ◽  
Vol 19 (2) ◽  
pp. 27-70 ◽  
Author(s):  
Kamran Shah ◽  
Attaullah Shah
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Ownership Structure ◽  
Management Practices ◽  
Stock Exchange ◽  
Discretionary Accruals ◽  
Minority Shareholders ◽  
Corporate Decisions ◽  
The Board Of Directors ◽  
The Impact

This study analyzes the impact of corporate governance and ownership structure on earnings management for a sample of 372 firms listed on the Karachi Stock Exchange over the period 2003–10. We estimate discretionary accruals using four well-known models: Jones (1991); Dechow, Sloan, and Sweeney (1995); Kasznik (1999); and Kothari, Leone, and Wasley (2005). The results indicate that discretionary accruals increase monotonically with the ownership percentage of a firm’s directors, their spouses, children, and other family members. This supports the view that managers who are more entrenched in a firm can more easily influence corporate decisions and accounting figures in a way that may serve their interests. This finding is consistent with prior research evidence on the role of dominant directors in expropriating external minority shareholders in Pakistan. Further, our results indicate that institutional investors play a significant role in constraining earnings management practices. We do not find any evidence that CEO duality, the size of the auditing firm, the number of members on the board of directors, and ownership concentration influence discretionary accruals. Among the control variables, we find that firms that are more profitable, are growing, or have higher leverage actively manage their earnings, while earnings management decreases with the age of the firm. The results are robust to several alternative specifications.

scholarly journals Analisis Struktur Kepemilikan dan Good Corporate Governance terhadap Manajemen Laba pada Perusahaan di Bursa Efek Idonesia

2021 ◽  
pp. 220-225
Author(s):  
Jova Yolanda ◽  
Dian Efriyenti
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Management Practice ◽  
Institutional Ownership ◽  
Audit Committees ◽  
Good Corporate Governance ◽  
The Board Of Directors

Earnings management practice is the decision to choose a particular accounting method that can achieve the goal of increasing reported profits or reducing investment losses. Misappropriation of financial statements by management can affect the amount of reported income. This study aims to determine whether ownership structure and good corporate governance have a significant influence on earnings management. The study was conducted on pharmaceutical sub-sector companies listed on the Indonesia Stock Exchange (IDX) in a row for the 2016-2020 period. The sample technique used is purposive sampling, so as many as 7 samples of companies are used. The data testing method uses multiple linear analysis. The results of the data test show that partially institutional ownership has a negative and significant effect on earnings management, independent commissioners, the audit committee, and the board of directors has a negative but not significant effect on earnings management. Simultaneously the results state that institutional ownership, independent commissioners, audit committees, and the board of directors have an effect but not significantly on earnings management.

scholarly journals The impact of audit quality, corporate governance, and company characteristics on earnings management

2021 ◽  
Vol 11 (1) ◽  
pp. 107-112
Author(s):  
Yousef Shahwan
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Free Cash Flow ◽  
Statistical Testing ◽  
Return On Assets ◽  
Industrial Firms ◽  
The Impact

This study aims to investigate empirically how the characteristics of the firm; the audit quality and the corporate governance impact the management of earnings. The population employed in this study is industrial firms listed on the Amman Stock Exchange between 2017 and 2019. The method of sampling employed in this study is purposive sampling. 39 firms are analyzed, with 117 items of data being achieved. Also, this study applies statistical testing via multiple regression. The findings show that sales growth, free cash flow, financial leverage, and return on assets all have an impact on earnings management. Meanwhile, other factors such as audit quality, firm size, audit committee, the board size, institutional ownership, and managerial ownership, have not to impact on earnings management.

The impact of audit committee on real earnings management: Evidence from Netherlands

2020 ◽  
Vol 4 (1) ◽  
pp. 33-46 ◽  
Author(s):  
Sana Masmoudi Mardessi ◽  
Yosra Makni Fourati
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Real Earnings Management ◽  
Financial Expertise ◽  
Relevant Topic ◽  
And Gender ◽  
The Impact

This paper aims to examine the effect of the characteristics of an audit committee on real earnings management in the Dutch context. Our sample is composed of 80 non-financial companies listed on the Amsterdam Stock Exchange during the period between 2010 and 2017. Four proxies are used to measure audit committee characteristics, namely, audit committee independence, financial expertise, gender diversity, and audit committee meetings. To test our hypotheses, we use a regression model to identify the influence of a set of audit committee characteristics on real earnings management after controlling for firm audit committee size, leverage, size, loss, growth and board size. Our analyses provide evidence that audit committee independence and gender diversity constrain real earnings management. Our findings also suggest that audit committee financial expertise reduces to some extent the likelihood of engaging in real earnings management. To the best of our knowledge, the Dutch context is not yet explored especially following the issue of the long-awaited new Dutch Corporate Governance Code in 2016 which has been updated for a long period in 2008. Therefore, corporate governance is a relevant topic in the Netherlands. This study contributes geographically to the Audit Committee and earnings management literature that examines another possible method, specifically, real earnings management.

scholarly journals Impact of Improved Corporate Governance and Regulations on Earnings Management Practices—Analysis of 7 Industries from the Indian National Stock Exchange

2021 ◽  
Vol 14 (10) ◽  
pp. 454
Author(s):  
Jose Joy Thoppan ◽  
Robert Jeyakumar Nathan ◽  
Vijay Victor
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Management Practices ◽  
Positive Impact ◽  
Stock Exchange ◽  
Accounting Standards ◽  
Discretionary Accruals ◽  
Manufacturing Firms ◽  
Listed Firms ◽  
The Impact

This study investigates discretionary earnings management practices, tracing the changes over the years in selected top performing and highly liquid listed Indian firms. It empirically measures the impact of corporate governance, financial legislation and global reporting standards on the firms’ earnings management practices. The study analyses a sample of 712 firm-year data comprising 89 listed Indian companies across 7 different sectoral indices of the National Stock Exchange of India (NSE) over 8 years (2011–2018). The Modified Jones model was used to compute Discretionary Accruals to measure Earnings Management based on data obtained using Bloomberg terminals. Statistical results and plots generated in Stata offer evidence that instances of earnings management have significantly reduced after the enactment of the Companies Act 2013 and the adoption of Indian Accounting standards which are converged with the IFRS. Findings suggest that services firms are engaging in relatively higher levels of earnings management compared to manufacturing firms. This study reveals the positive impact of improved corporate governance, regulation, and enforcement by significantly reducing the levels of earnings management among listed firms in India.

scholarly journals Pengaruh Good Corporate Governance dan Leverage Terhadap Manajemen Laba

2020 ◽  
Vol 6 (2) ◽  
Author(s):  
Yayuk Fanani ◽  
Sulistyo Sulistyo ◽  
Rita Indah Mustikowati
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Stock Exchange ◽  
Descriptive Analysis ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Good Corporate Governance ◽  
Regression Test ◽  
The Board Of Directors

This study aims to determine the effect of good corporate governance and leverage on earnings management. The population used is manufacturing companies listed on the Indonesia Stock Exchange in 2014-2015 and the sample determination method used is purposive judgment sampling. Samples obtained were 44 companies. Data analysis techniques used are descriptive analysis, classic assumption test, multiple linear regression test, and hypothesis testing. This study found that simultaneous good corporate governance and corporate leverage influence earnings management. Partially, this research found that good corporate governance is proxied by institutional ownership (KI), managerial ownership (KM), audit committee (KA), company size (UK), and leverage affect earnings management, while the independent board of commissioners (DKI) and the board of directors (DD) have no effect on earnings management.

scholarly journals EFFECT OF CORPORATE GOVERNANCE (WOMAN’S EXECUTIVE BOARD), COMPANY SIZE AND LEVERAGE ON PROFIT MANAGEMENT

2019 ◽  
Vol 3 (1) ◽  
pp. 51-65
Author(s):  
Siska Octaviani ◽  
Ely Kartikaningdyah
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Multiple Regression ◽  
Audit Committee ◽  
Sampling Method ◽  
Stock Exchange ◽  
Discretionary Accruals ◽  
Company Size ◽  
Manufacturing Companies ◽  
Executive Board

The purpose of this study was to measure the effect of corporate governance (female membership), company size and leverage on profits in companies on the Indonesia Stock Exchange (BEI) in 2012-2016. The variables used in this study are size variables, and the variable used in this study is earnings management that uses discretionary accruals using the Dechow et. Al. (1995). Withdrawal of the research sample using purposive sampling method that gets 225 samples of manufacturing companies and data which are data panels. This study conducts multiple regression with multiple regression with Eviews version 10. The results of this study indicate that the female board of directors who are insightful with earnings management when the female board of commissioners, women's audit committee, company size, and leverage do not affect earnings management.

scholarly journals PENGARUH EARNINGS MANAGEMENT TERHADAP FUTURE PROFITABILITY TERKAIT DENGAN OWNERSHIP STRUCTURE, FIRM SIZE DAN CORPORATE GOVERNANCE PRACTICES

Media Ekonomi ◽  
2017 ◽  
Vol 20 (2) ◽  
pp. 55
Author(s):  
Ikhsan Yudha Asmara ◽  
Felizia Arni Rudiawarni
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Ownership Structure ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
The Future ◽  
Governance Practices ◽  
The Impact

This study aims to determine how the effect of earnings management on future profitability business entity engaged in the manufacturing sector listed on the Indonesia Stock Exchange, and how the effects of the ownership structure, company size, and the practice of corporate governance (proxied by the audit quality, independent board member and audit committee) regarding the impact of earnings management on the future profitability of manufacturing sector enterprises listed on the Stock Exchange. This study used a sample of manufacturing sector companies listed on the Indonesia Stock Exchange in the period 2008-2010. The samples used in this study were 262 observations. The sampling method used was probability sampling - judgment / purposive sampling. Independent variables used in this study are earnings management (proxied by the CFO, NDAC, and DAC), ownership structure (proxied by DFAM and INST), firmsize, and corporate governance practices (proxied by the AUDIT, BOD, and AUDCOM). The dependent variable in this study is the future profitability proxied by the variable "and CFOT earnt + 1 + 1. The results of this study were (1) earnings management proved to have a significant impact on the future profitability of manufacturing sector enterprises. The influence that appears different depending on the proxy used; (2) The ownership structure did not have an influence on the behavior of earnings management related to future profitability of manufacturing sector enterprises; (3) firmsize not affect earnings management behaviors related to future profitability of manufacturing sector enterprises; overall corporate governance practices are not effective in influencing the behavior of earnings management related to the future profitability of manufacturing sector enterprises. Keywords  :   future profitability, earnings management, ownership structure, corporate governance practice

scholarly journals Analisis Pengaruh Manajemen Laba Terhadap Nilai Perusahaan dengan Good Corporate Governance Sebagai Variabel Moderasi (Studi Kasus Pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2015-2017)

2019 ◽  
Vol 3 (6) ◽  
pp. 01
Author(s):  
Theresia Shirley Tanadi Dan Indra Widjaja
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Stock Exchange ◽  
Discretionary Accruals ◽  
Manufacturing Firms ◽  
Analysis Method ◽  
Book Value ◽  
Basic Industry ◽  
Good Corporate Governance

The main objective of this research is to collect the empirical evidence of the influence of earnings management to the Firms’ value, with good corporate governance as the moderating variable, for Manufacturing Firms that are registered to the Indonesian Stock Exchange as of 2015 – 2017. Manufacturing Firms as the research subject, with Consumer Goods Industry and Basic Industry & Chemical sector. The research variables are (1) profit management, with proxy discretionary accruals modified jones; (2) Firm’s value, with proxy price to book value; and (3) good corporate governance, with proxy independent commissioner proportion and audit committee. This research used simple and moderated regression analysis method. The result indicates that earnings management has an impact on the Firms’ value and audit committee moderates the influence of earnings management to Firms’ value, whereas independent commissioner does not.

scholarly journals An empirical study: characteristics of business entities and corporate governance on risk disclosure practices

2019 ◽  
Vol 20 ◽  
pp. 25-49
Author(s):  
Arfan Amrin
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Stock Exchange ◽  
Risk Disclosure ◽  
External Auditors ◽  
Risk Monitoring ◽  
Business Entities ◽  
Corporate Risk ◽  
The Impact

This paper investigates the association between the characteristics of business entities, corporate governance, and practices of risk disclosure. Notably, the objective of this paper is to examine the impact of the characteristics of business entities and corporate governance on risk disclosure in non-financial companies. The samples used in this study included 312 non-financial companies registered on the Indonesia Stock Exchange. The hypothesis testing in this paper using regression analysis. The results of this paper indicate that the size of the audit committee (SAC), the availability of risk monitoring or risk management committees (RMC) and the quality of external auditors (AUD) are significantly associated with corporate risk disclosure practices (CRD). These empirical results show that the presence of risk monitoring committee, the quality of external auditors, and the size of the audit committee are the main factors determining the extent of risk disclosure, especially for non-financial companies listed on the Indonesia Stock Exchange. This paper also shows that the age of business entities has a negative impact on corporate risk disclosure practices.

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