scholarly journals How Do Italian Private Companies Respond to a Reduction in the Corporate Standard Tax Rate? A Focus on the Ownership Gender Diversity Effect

2019 ◽  
Vol 9 (4) ◽  
pp. 205
Author(s):  
Simone Poli
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Management Practices ◽  
Gender Diversity ◽  
Fiscal Year ◽  
Knowledge Gap ◽  
Private Companies ◽  
Tax Rate ◽  
Diversity Effect ◽  
The World

Cuts in the corporate standard tax rate can encourage companies to manage their earnings in order to save on taxes by shifting earnings from the fiscal year in which it is higher to the fiscal year in which it is lower. This phenomenon has been very little explored for private companies, despite their importance in many countries around the world. Moreover, no previous study has verified whether certain features of private companies’ ownership structure may affect the aforementioned phenomenon. In order to contribute to filling this knowledge gap, this study aims to verify whether the gender of the owners has any impact. Focusing on Italian private companies, this study shows that they responded to the cut in the corporate standard tax rate that came into force in fiscal year 2017 by putting in place earnings management practices that shifted profits from FY 2016 to FY 2017. At the same time, it shows that the gender of owners has not had any impact on the phenomenon; in other words, Italian female-owned and male-owned private companies do not behave in statistically different ways.

scholarly journals The Relationship between Shareholder Gender and Earnings Management in Private Italian Companies

2016 ◽  
Vol 12 (1) ◽  
pp. 11
Author(s):  
Simone Poli
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Management Practices ◽  
Discretionary Accruals ◽  
Knowledge Gap ◽  
Specific Relationship ◽  
Abnormal Accruals ◽  
The Relationship ◽  
Female Ownership

Although the relationship between the type and characteristics of shareholders and earnings management practices is a topic that has been extensively investigated in the literature, the specific relationship between shareholder gender and earnings management practices has been overlooked by scholars. To contribute to filling this knowledge gap, this study investigates whether and how shareholder gender is related to the magnitude of abnormal (or discretionary) accruals in private Italian companies. It shows that the relationship between female ownership and the magnitude of abnormal accruals is not linear (and negative), but quadratic. This means that the practice of manipulating accruals is not contrasted by the presence of female ownership but by the presence of gender heterogeneity in the ownership structure.

Earnings management and audit quality at Damascus securities exchange: Does managerial ownership matter?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zukaa Mardnly ◽  
Zinab Badran ◽  
Sulaiman Mouselli
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Management Practices ◽  
Audit Quality ◽  
Emerging Market ◽  
Ordinary Least Squares ◽  
Managerial Ownership ◽  
External Audit ◽  
Content Type ◽  
The Impact

Purpose The purpose of this study is to examine the individual and combined effect of managerial ownership and external audit quality, as two control mechanisms, on earnings management. Design/methodology/approach This study applies ordinary least squares estimates on fixed-time effects panel regression model to test the impact of the investigated variables on earnings management for the whole population of banks and insurance companies listed at Damascus Securities Exchange (DSE) during the period from 2011 to 2018. Findings The empirical evidence suggests a negative non-linear relationship between managerial ownership (as proxied by board of directors’ ownership) on earnings management. However, neither audit quality nor the simultaneous effect of the managerial ownership and audit quality (Big 4) affects earnings management. Research limitations/implications DSE is dominated by the financial sector and the number of observations is constrained by the recent establishment of DSE and the small number of firms listed at DSE. In addition, the non-availability of data on executive directors’ and foreign ownerships restrict our ability to uncover the impact of different dimensions of ownership structure on earnings management. Practical implications First, it stimulates investors to purchase stocks in financial firms that enjoy both high managerial ownership, as they seem enjoying higher earnings quality. Second, the findings encourage external auditors to consider the ownership structure when choosing their clients as the financial statements’ quality is affected by this structure. Third, researchers may need to consider the role of managerial ownership when analyzing the determinants of earnings management. Originality/value It fills the gap in the literature, as it investigates the impact of both managerial ownership and audit quality on earnings management in a special conflict context and in an unexplored emerging market of DSE. It suggests that managerial ownership exerts a significant role in controlling earnings management practices when loose regulatory environment combines conflict conditions. However, external audit quality fails to counter earnings management practices when conditions are fierce.

Board gender diversity, corporate governance, and earnings management

2019 ◽  
Vol 35 (1) ◽  
pp. 37-60 ◽  
Author(s):  
Nurlan Orazalin
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Management Practices ◽  
Gender Diversity ◽  
Policy Implications ◽  
Annual Reports ◽  
Public Companies ◽  
Content Type ◽  
Weak Evidence ◽  
Board Gender Diversity

Purpose The purpose of this study is to examine whether board gender diversity and other board characteristics affect earnings management practices of top public companies in Kazakhstan. Design/methodology/approach The study analyzes data of top public companies for the period 2010-2016. Data on corporate governance were manually collected from annual reports and investment memorandums, and financial data were collected from audited financial statements. Findings The empirical results show that companies with greater board gender diversity are more effective in constraining earnings management. The findings also indicate that companies with larger boards adopt a more restrained approach to earnings management practices, thus supporting the theoretical framework of the study. However, the results provide weak evidence of the association between board independence and earnings quality. Originality/value This study is the first to investigate the relationship between gender diversity and earnings management in emerging markets such as Kazakhstan that offers managerial and policy implications.

scholarly journals The effect of the ownership structure on earnings management practices

2018 ◽  
Vol 15 (4) ◽  
pp. 48-60 ◽  
Author(s):  
Sanaa Maswadeh
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Management Practices ◽  
Management Practice ◽  
Institutional Ownership ◽  
Foreign Ownership ◽  
Industrial Companies ◽  
Multiple Regression Models ◽  
Controlling Variables ◽  
And Control

The objective of this study is to investigate the effect of the ownership structure, which includes concentration ownership, institutional ownership and foreign ownership in the light of the debt ratio and company size as controlling variables in limiting the earnings management practices of the Jordanian industrial companies for the period 2012–2016. The hypotheses of the study were tested using the multiple regression models. Among the most prominent findings of the study are: the explanatory factor (R2) for the independent and control variables accounts for 38% of the change in the earnings management of the Jordanian industrial companies, moreover, a significant effect of the concentration ownership was found in the limitation of earnings management practices; while, there was no significant influence of institutional ownership and foreign ownership on the earnings management practices in Jordanian industrial companies. Major limitation to this study is the only considered listed industrial Jordanian firms. Thus, the generalization of the results to other sectors and diverse economic conditions and regulations may be constrained. Finally, Jordanian policymaker reform policies motivate companies to increase their interest on concentration ownership structure, as the study showed the significant effect of the concentration ownership in the limitation of earnings management practice.

scholarly journals Corporate Disclosure, Ownership Structure And Earnings Management: The Case Of French-Listed Firms

2015 ◽  
Vol 31 (4) ◽  
pp. 1493 ◽  
Author(s):  
Nadia Lakhal
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Ownership Structure ◽  
Management Practices ◽  
Corporate Disclosure ◽  
Minority Shareholders ◽  
Listed Firms ◽  
Good Corporate Governance ◽  
Management Measures ◽  
The Relationship

The purpose of this paper is to investigate the effect of corporate governance devices on earnings management for French-listed firms. Particularly, it examines the relationship between corporate disclosure practices, ownership structure features and earnings management by French managers. Results show that the relationship between earnings management measures and disclosure scores is negative suggesting that less transparent firms are likely to engage in earnings management practices. The findings also show that families, institutional investors and multiple large shareholders negatively influence earnings management, and hence, act as good corporate governance devices to limit managerial discretion. This paper shed light on the monitoring role of corporate disclosures and ownership structure in the French context where minority shareholders interests are less protected than in common law countries.

scholarly journals The Effect of Corporate Social Responsibility on Earnings Management: Bibliometric Review

2021 ◽  
Vol 9 (4) ◽  
pp. 68
Author(s):  
José Manuel Santos-Jaén ◽  
Ana León-Gómez ◽  
José Serrano-Madrid
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Voluntary Disclosure ◽  
Audit Committee ◽  
Gender Diversity ◽  
The World ◽  
Bibliometric Review ◽  
Corporate Social ◽  
The Impact

This review aims to study the knowledge development and research dissemination on the influence of Corporate Social Responsibility (CSR) on earnings management through a social network approach using a bibliometric review. A systematic bibliometric review was carried out on 329 papers obtained from the Clarivate Analytics Web of Science (WoS) Core Collection database. The data were analyzed by year, journal, author, institution, country, affiliation, subject area and term analysis. The results reveal the growing interest of researchers in studying the impact of CSR. Although the USA and China dominate publication production, there are a large number of authors from more than 50 countries around the world. The results also show that being prolific does not imply being influential in this area. The keyword patterns showed some interesting potential areas of study on this topic. The findings of this paper provide insight to the research on the analysis of the influence of CSR on earnings management. The most important findings consist of a number of gaps in the literature, such as gender diversity, voluntary disclosure of information and existence of an audit committee, among others, that allow for future fields of research to improve the analysis of the influence of CSR in EM. This research should also prove helpful to managers, owners and auditors. This is the first bibliometric review developed on this topic and it can be extrapolated to any place in the world.

scholarly journals Pengaruh Komite Audit dan CEO Tenure Terhadap Kualitas Laporan Keuangan

Wahana ◽  
2020 ◽  
Vol 23 (2) ◽  
pp. 260-272
Author(s):  
S Sumayyah ◽  
Nanda Ladepi
Keyword(s):  
Earnings Management ◽  
Audit Committee ◽  
Management Practices ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Real Earnings Management ◽  
Fiscal Year ◽  
Ceo Tenure ◽  
Result Show

This study investigates the effect of committee audit on the quality of financial statements with proxies of real earnings management, and CEO tenure involvement in real earnings management for firms listed in Indonesia Stock Exchange (IDX). The study uses a  sample of 265 observation of publicly listed companies on the IDX for the fiscal year that ends on December 31, 2017 through 2019. The data analysis technique used is multiple linear regression analysis using eviews statistic. The result show that  audit committee negatively affects real earnings management while CEO tenure positively affects real earnings management practices.

scholarly journals PERILAKU EARNINGS MANAGEMENT DI SEKITAR PERUBAHAN TARIF PAJAK TAHUN 2008

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Suyanto Suyanto
Keyword(s):  
Earnings Management ◽  
Income Tax ◽  
Stock Exchange ◽  
Discretionary Accruals ◽  
Earning Management ◽  
Fiscal Year ◽  
Tax Rates ◽  
Tax Rate ◽  
Before And After ◽  
Tax Changes

This study aims to test the level of earning management before and after the income tax rate reduction for 2008 fiscal year. The samples were 21 banking companies listed in Indonesia Stock Exchange, which has provides loans to SMEs. The analysis using paired samplest-test to test these differences of earning management before and after the income tax rates changes. The results showed that earning management in the high tax rate was higher than in the lower tax rate. This shows that management has responded the income tax rates changes to take the opportunity. Keywords: discretionary accruals, earnings management, corporate income tax changes.

Short-Term Incentive Effects of a Reduction in the NOL Carryback Period

2011 ◽  
Vol 33 (2) ◽  
pp. 67-88 ◽  
Author(s):  
Susan M. Albring ◽  
Dan S. Dhaliwal ◽  
Inder K. Khurana ◽  
Raynolde Pereira
Keyword(s):  
Earnings Management ◽  
Income Tax ◽  
Control Sample ◽  
Fiscal Year ◽  
Income Shifting ◽  
Tax Law ◽  
Short Term ◽  
Tax Rate ◽  
Incentive Effects ◽  
Loss Firms

ABSTRACT We examine whether the Taxpayer Relief Act of 1997 (TRA 1997), which reduced the net operating loss (NOL) carryback period from three to two years, created a short-term incentive effect to shift income to accelerate loss recognition in the tax year 1997. We find that our sample of NOL firms in the treatment year of 1997 display higher (lower) levels of income-decreasing (-increasing) earnings management, compared to a control sample of loss firms. When we focus strictly on the NOL firms in the transition year, we find that firms with higher reported income tax expense in fiscal year 1995 display greater income shifting to accelerate loss recognition. We also find that income shifting is greater for treatment NOL firms that expect to report losses in the post-TRA 1997 regime. Overall, our study highlights how changes in tax law provisions (as opposed to tax rate changes) affect firms' reporting behavior.

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