scholarly journals Effects of Board Size, Board Composition and Dividend Policy on Real Earnings Management in the Jordanian Listed Industrial Firms

2020 ◽  
Vol 11 (4) ◽  
pp. 195
Author(s):  
Yousef Shahwan ◽  
Tareq Hammad Almubaydeen
Keyword(s):  
Earnings Management ◽  
Dividend Policy ◽  
Structural Model ◽  
Negative Impact ◽  
Industrial Sector ◽  
Real Earnings Management ◽  
P Value ◽  
Board Composition ◽  
Board Size ◽  
The Impact

Earning manipulation has been a normal transaction among the global businesses, in which business organization sees it as beneficial, thereby turning black eyes to its negative impact on the general economy. This study aimed at examining the impact of board size, Board composition and dividend policy on real earnings management in the listed Jordanian industries. 8 years data (2010 to 2018) was extracted from the audited financial reports of the selected firms. Data was analyzed using Structural Model via AMOS version 26 and SPSS version 21. The findings revealed a positive and significant effect between board size, board composition and real earning management at p-value<0.05 and 0.001 (two-tailed) respectively. While negative of dividend policy on REM was recorded at p-value>0.05 (two-tailed). This study has immensely contributed towards bridging the gap in the existing knowledge as it documented a new finding. The benefits of these findings cross over the managers, shareholders, board of directors, investors, the Jordanian government and all other relevant institute for the buildup of the healthiest industrial sector and better economy.

scholarly journals The Effect of Both Earnings Management and Tax Planning To The Value of The Company With Corporate Governance As Variable Moderating

2017 ◽  
Vol 2 (01) ◽  
pp. 1
Author(s):  
Nia Suryani ◽  
Djuminah Djuminah
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Management Practices ◽  
Negative Impact ◽  
Tax Planning ◽  
Primary Objective ◽  
Regression Coefficients ◽  
P Value ◽  
Discretionary Accrual ◽  
The Impact

<p>The primary objective of this study is to determine the impact of both earnings management and tax planning towards the value of the firm, corporate governance is measured by using score CGPI as moderating variable. This study uses purposive sampling method that generates 40 samples of company listings on the Indonesia Stock Exchange (IDX) and registered in participation Corporate Governance Perception Index (CGPI) during 2012 until 2015.</p><p><br />Based on the test result of regression analysis it showed that earnings management practices which is measured by using discretionary accrual shows regression coefficients of 2,557 with p-value of 0,015 or p-value is below 0,05, so it has negative impact to the value of the firm, then it can be concluded that the existence of earnings management can reduce the value of the firm. Tax planning activity is measured by using Cash_ETR which shows regression coefficients -0.956 with a p-value of 0,005 or p-value is below 0,05, which means it gives a negative impact to the value of the firm, so it can be concluded that the higher level of tax planning by management will have an impact on the declining value of the firm. Furthermore, corporate governance which is measured using the CGPI’s score is not a moderating variable between earnings management and value of the firm, showed by p-value of 0,090, whereas the relationships of tax planning and value of the firm can be moderated by corporate governance, showed by p-value of 0,024.</p><p><br />Keywords: CGPI’s Score, Corporate Governance, Discretionary Accrual, Earnings Management, Tax Planning, Value of the Firm</p>

scholarly journals The Impact of Managerial Ability on the Relation between Real Earnings Management and Future Firm’s Performance: Applied Study

2019 ◽  
pp. 59-96
Author(s):  
Mohamed Hessian
Keyword(s):  
Earnings Management ◽  
Negative Impact ◽  
Cash Flows ◽  
Production Costs ◽  
Real Earnings Management ◽  
Managerial Ability ◽  
Firm Resources ◽  
Sales Revenue ◽  
Operational Activities ◽  
The Impact

This study aims to investigate the managerial ability of executives’ managers’ role on mitigating the negative impact of real earnings management on future firm’s performance. The researcher operationalizes managerial ability by using a measure developed by Demerjian, Lev, and McVay (2012). This measure captures managers’ ability to efficiently convert firm resources into sales revenue relative to their industry peers. In other words, higher-ability managers are more likely to generate more sales revenue for a given set of resources compared to lower-ability managers. The researcher follows Roychowdhury (2006) and Kothari et al. (2016) to calculate abnormal sales, abnormal production costs, and abnormal discretionary expenses. To capture the total effects of three REM methods an aggregate REM that is a proxy for real earnings activities was used. Following Gunny (2010) and Huang & Sun (2017) future performance proxies are ROA and operating cash flows to total assets (CFO) for the next three years each year. Using a panel sample of 605 firm-year observations from 2005 to 2015. The study concluded that there is a positive significant relationship between the managerial ability of managers and earnings management through manipulating of real operational activities.

scholarly journals DIVIDEND POLICY, CORPORATE GOVERNANCE AND EARNINGS QUALITY: A CASE OF NON-FINANCIAL LISTED FIRMS OF PAKISTAN

2021 ◽  
Vol 9 (3) ◽  
pp. 517-530
Author(s):  
Tehmina Afzal ◽  
Atif Atique Siddiqui ◽  
Shiraz Khan ◽  
Muhammad Kamran Khan ◽  
Nader Huseen
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Firm Size ◽  
Dividend Policy ◽  
Audit Quality ◽  
Negative Impact ◽  
Earnings Quality ◽  
Earning Quality ◽  
The Impact

Purpose of the study: This research empirically examined the impact of the dividend policy and corporate governance attributes (board size, board meetings, audit quality, nomination committee, board independence, remuneration committee, and CEO duality) on earnings quality (EQ) of the firms in Pakistan. Methodology: The study used secondary data of 148 non-financial listed companies of the Pakistan Stock Exchange (PSX) with 1450 firm-year observations over 10 years from 2010 to 2019. Earning quality was assessed by the earnings management, while the values of the discretionary accruals were used to measure earnings management by employing the Modified jones model (1995). Panel regression analysis examined the impact of independent variables (dividend policy & characteristics of CG) on the dependent variable (EQ). Main Findings: Results revealed that the dividend policy showed no significant impact on earnings quality. Also, the results indicated that the audit quality and remuneration committee have a significant negative impact on earning management and a positive impact on earning quality. However, the results illustrate that the large board size, board meetings, CEO duality, firm size, and leverage have a positive influence on earnings management and a negative impact on earnings quality. Overall the study found that the corporate governance characteristics, firm size, and leverage influence the earnings quality of the firms in Pakistan. Applications of this study: The empirical results of the study will help to improve the understanding of dividend policy & corporate governance attributes in relationship with the EQ. Second, as dividend is considered one of the most important factors influencing investment decisions, so this endeavour will clarify to the investors and regulators that whether dividend will predict the quality of earnings in Pakistani firms. Novelty/Originality of this study: This study extends the literature of earnings quality that is very thin in Pakistan.

Real earnings management or “just business”

2017 ◽  
Vol 9 (3) ◽  
pp. 268-283
Author(s):  
Angel Arturo Pacheco Paredes ◽  
Clark Wheatley
Keyword(s):  
Earnings Management ◽  
Negative Impact ◽  
Production Costs ◽  
Real Earnings Management ◽  
Business Practices ◽  
Sales Growth ◽  
Content Type ◽  
Future Performance ◽  
Future Return ◽  
The Impact

Purpose The purpose of this study is to refine what is characterized as real earnings management. Research on real earnings management (REM) has expressed concerns that firms deviating from normal business practices may endure a negative impact on future performance. Not all studies have, however, found a negative impact of REM on future performance. As a consequence, a new stream of research is emerging that examines whether actions that would mechanically be identified as REM are truly earnings management or are simply efficient business activities. The authors further this stream of inquiry by identifying factors, i.e. restructurings and expectations of future sales growth, that can be useful in making a distinction between earnings management and “just business”. Design/methodology/approach To measure REM, the authors rely on two of the proxies of Roychowdhury (2006), abnormal discretionary expenses and abnormal production costs, and regress interactions of these with measures of restructurings and expectations of future sales growth, on future performance. Findings The authors find that when they control for restructurings, reductions in discretionary expenses that would ordinarily be indicative of REM are instead associated with improved future return-on-assets and security returns. They further find that when they control for future sales growth, overproduction is also associated with improved return on sales as it is with future increases in cost of goods sold. Originality/value Together, the results may explain the contradictory results presented in prior research with respect to the impact of REM on future performance – that is, some of what has been identified as REM in prior studies may, in fact, be “just business”.

scholarly journals OWNERSHIP STRUCTURE, BOARD SIZE, BOARD COMPOSITION AND DIVIDEND POLICY: NEW EVIDENCE FROM TWO EMERGING MARKETS

2016 ◽  
Vol 12 (2) ◽  
Author(s):  
Muhammad Sadiq Shahid ◽  
Keyword(s):  
Corporate Governance ◽  
Emerging Markets ◽  
Ownership Structure ◽  
Fixed Effects ◽  
Dividend Policy ◽  
Positive Impact ◽  
Board Composition ◽  
Board Size ◽  
Listed Firms ◽  
The Impact

Good corporate governance practices build equilibrium between management and shareholders and eliminate agency problems, as results managers pursue a suboptimal dividend policy. The aim of this study is to examine the potential relationship between ownership structure, board size, board composition, CEO duality and dividend policy of 176 listed firms at KSE and 280 listed firms at BSI from 2010-2015. We used pooled OLS regression test to analyze the association between corporate governance determinants and dividend policy. Among other methods, VIF and Hausman tests had been used to check the fitting of Random effects and fixed effects, while fixed effect method was chosen to test the hypothesis. We discover a positive association between managerial ownership, board size, board independent and dividend policy, while a negative association of ownership concentration and dividend policy. Finally, it is observed that there is a positive impact of return on assets (ROA) and size on dividend policy. This study will contribute to the existing literature through investigating the impact of corporate governance on dividend policies of listed firms in emerging markets.

The Effect of IFRS Convergence on Earnings Quality: Empirical Evidence from Indonesia

2017 ◽  
Vol 2 (4) ◽  
pp. 21-31
Author(s):  
Paulina Sutrisno ◽  
Indra Arifin Djashan
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Negative Impact ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Jel Classification ◽  
Real Earnings Management ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
The Impact

Objective - The purpose of this research is to examine the impact of the International Financial Reporting Standard (IFRS) convergence in Indonesia on earnings quality. Methodology/Technique - Earnings quality is measured on both accrual earnings management and real earnings management. Indonesia began convergence IFRS in 2012. IFRS is considered capable of improving comparability, transparency, and earnings information, which is expected to ultimately improve earnings quality. The sample in this research uses manufacturing firms listed on the Indonesian Stock Exchange that were suspected to avoid loss during the observation period. The data consist of 45 companies examined between 2008 and 2015. Results - This study uses statistical methods and multiple regression linear to analyse the data. The research results show that IFRS convergence in Indonesia has had a negative impact on accrual earnings management and no impact on real earnings management. Novelty - The evidence shows that IFRS convergence in Indonesia has the ability to improve earnings quality related to a decrease in accrual earnings management but not real earnings management. Type of Paper: Empirical Keywords: IFRS; Discretionary Accrual; Abnormal Cash Flow Operation; Abnormal Production; Abnormal Discretionary Expenditure. JEL Classification: M40, M41, M49

Corporate Social Responsibility and Earnings Management: The Moderating Role of Family Ownership

2019 ◽  
Vol 12 (1) ◽  
Author(s):  
Asif Saeed ◽  
Aijaz Mustafa Hashmi ◽  
Attiya Yasmin Javid
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Family Firms ◽  
Negative Impact ◽  
Stock Exchange ◽  
Least Square ◽  
Family Ownership ◽  
Corporate Social ◽  
The Impact

This study aims to explore the impact of family ownership on the relationship among corporate social responsibility (CSR) and earning management (EM) in Pakistan. Data is collected from nonfinancial listed firms on Pakistan Stock Exchange (PSE) for the period 2009-2017. Our results of pooled ordinary least square regression indicate that CSR has significant negative impact on EM. Furthermore, results also indicate that association between CSR and EM is moderated by family ownership. Family firms which perform CSR activities are less involved in EM as compare to nonfamily firms perform CSR activities. This variation in behavior of EM in family and non-family firms can possibly be explained by socioemotional wealth theory. Keywords: Corporate Social Responsibility, Earnings Management, Family Ownership

scholarly journals Generalized Joint Hypermobility and Anxiety in Adolescents and Young Adults, the Impact on Physical and Psychosocial Functioning

Healthcare ◽  
2021 ◽  
Vol 9 (5) ◽  
pp. 525
Author(s):  
Janneke de Vries ◽  
Jeanine Verbunt ◽  
Janine Stubbe ◽  
Bart Visser ◽  
Stephan Ramaekers ◽  
...  
Keyword(s):  
Young Adults ◽  
Psychosocial Functioning ◽  
Negative Impact ◽  
Pain Catastrophizing ◽  
Joint Hypermobility ◽  
Adolescents And Young Adults ◽  
P Value ◽  
High Performing ◽  
Generalized Joint Hypermobility ◽  
The Impact

The purpose of this study was to study the association between the presence of generalized joint hypermobility (GJH) and anxiety within a non-clinical high performing group of adolescents and young adults. Second, to study the impact of GJH and/or anxiety on physical and psychosocial functioning, 168 adolescents and young adults (mean (SD) age 20 (2.9)) were screened. Joint (hyper)mobility, anxiety, and physical and psychosocial functioning were measured. In 48.8% of all high performing adolescents and young adults, GJH was present, whereas 60% had symptoms of anxiety. Linear models controlled for confounders showed that adolescents and young adults with GJH and anxiety had decreased workload (ß (95%CI) −0.43 (−0.8 to −0.08), p-value 0.02), increased fatigue (ß (95%CI) 12.97 (6.3–19.5), p-value < 0.01), and a higher level of pain catastrophizing (ß (95%CI) 4.5 (0.5–8.6), p-value 0.03). Adolescents and young adults with only anxiety had increased fatigue (ß (95%CI) 11 (4.9–19.5). In adolescents and young adults with GJH alone, no impact on physical and psychosocial functioning was found. Adolescents and young adults with the combination of GJH and anxiety were significantly more impaired, showing decreased physical and psychosocial functioning with decreased workload, increased fatigue, and pain catastrophizing. Presence of GJH alone had no negative impact on physical and psychosocial functioning. This study confirms the association between GJH and anxiety, but especially emphasizes the disabling role of anxiety. Screening for anxiety is relevant in adolescents and young adults with GJH and might influence tailored interventions.

scholarly journals The Impact of Brand Equity on Employee’s Opportunistic Behavior: A Case Study on Enterprises in Vietnam

2021 ◽  
Vol 14 (4) ◽  
pp. 164
Author(s):  
Quang Bach Tran ◽  
Quoc Hoi Le ◽  
Hoai Nam Nguyen ◽  
Dieu Linh Tran ◽  
Thi Thuy Quynh Nguyen ◽  
...  
Keyword(s):  
Employee Engagement ◽  
Brand Equity ◽  
Structural Equation ◽  
Structural Model ◽  
Negative Impact ◽  
Theory And Practice ◽  
Emotional Engagement ◽  
Opportunistic Behavior ◽  
Corporate Brand ◽  
The Impact

Brand is considered a valuable asset that a business wants to create and maintain growth throughout its business cycle. This paper examines the impact of corporate brand equity on employees’ opportunistic behavior. The paper uses quantitative research methods, through linear SEM (Structural Equation Modelling) analysis of structural model with a scale of 609 samples of employees of enterprises in Vietnam. The research results show that corporate brand equity has a negative impact on employees’ opportunistic behavior. In the relationship between these two factors, trust and emotional engagement act as intermediate factors. Additionally, the research demonstrates that trust has a positive effect on all three components of employee engagement, including emotional engagement, computational engagement, and standards-based engagement. On that basis, the research suggests a number of recommendations to minimize the opportunistic behavior of employees in the enterprise. The findings of this study have shown the importance and impact of brand equity on employee opportunistic behavior. These are meaningful contributions in both theory and practice to help businesses gain deeper insight into brand equity and the need to pay attention to building and developing durable brand equity for businesses. At the same time, it is an important basis for the next research projects.

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