Journal ArticleDOI
Earnings management and board activity: an additional evidence
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TLDR
In this paper, the authors examined the relation between earnings management behavior and the activity of both the board and audit committee and found that earnings management is negatively related to both board and committee independence.Abstract:
Purpose – The purpose of this paper is to examine the relation between earnings management behavior and the activity of both the board and audit committee.Design/methodology/approach – Different models to isolate abnormal accruals as a proxy for earnings management are applied to a sample of manufacturing companies.Findings – Earnings management is negatively related to both board and audit committee independence. Such negative relation is stronger when the audit committee is more active. However, this result is not valid for the board activity.Research limitations/implications – Results are limited by the accuracy of the models applied to isolate abnormal accruals.Practical implications – Results may have implications for corporate governance regulations such as board composition, audit committee composition, and their activity.Originality/value – Results of earnings management research are sensitive to the different models suggested in literature to isolate the abnormal accruals.read more
Citations
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Female executives and earnings management
Emilia Peni,Sami Vähämaa +1 more
TL;DR: In this paper, the authors examined the association between earnings management and the gender of the firm's executives and found that firms with female chief financial officers (CFOs) are associated with income-decreasing discretionary accruals.
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Corporate Environmental Disclosure, Corporate Governance and Earnings Management
TL;DR: In this paper, the authors examined the association between corporate environmental disclosure and earnings management and the impact of corporate governance mechanisms on that association, and found no significant statistical association between various measures of discretionary accruals (DA) and environmental disclosure.
Journal ArticleDOI
Female directors and earnings management: Evidence from UK companies
TL;DR: This paper examined how the presence of women directors on the corporate board influence earnings management practices and found that firms with a higher number of female and independent female directors are adopting restrained earnings management in the UK.
Posted Content
The Effect of IFRS Adoption and Investor Protection on Earnings Quality Around the World
TL;DR: In this article, the authors examined the effects of mandatory IFRS adoption and investor protection on the quality of accounting earnings in forty-six countries (around the globe) and found that earnings quality increases for mandatoryIFRS adoption when a country's investor protection regime provides stronger protection.
Journal ArticleDOI
The effect of IFRS adoption and investor protection on earnings quality around the world
TL;DR: In this article, the authors examined the effects of mandatory IFRS adoption and investor protection on the quality of accounting earnings in forty-six countries around the globe and found that earnings quality increases for mandatory IFS adoption when a country's investor protection regime provides stronger protection.
References
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Journal ArticleDOI
Separation of ownership and control
Eugene F. Fama,Michael C. Jensen +1 more
TL;DR: The authors argue that the separation of decision and risk-bearing functions observed in large corporations is common to other organizations such as large professional partnerships, financial mutuals, and nonprofits. But they do not consider the role of decision agents in these organizations.
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Agency Problems and the Theory of the Firm
TL;DR: In this article, the authors explain how the separation of security ownership and control, typical of large corporations, can be an efficient form of economic organization, and set aside the presumption that a corporation has owners in any meaningful sense.
Journal ArticleDOI
Earnings Management During Import Relief Investigations
TL;DR: In this article, the authors test whether firms that would benefit from import relief attempt to decrease earnings through earnings management during import relief investigations by the United States International Trade Commission (ITC).
Journal ArticleDOI
The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems
TL;DR: The last two decades indicate corporate internal control systems have failed to deal effectively with these changes, especially slow growth and the requirement for exit as mentioned in this paper, which is a major challenge for Western firms and political systems as these forces continue to work their way through the worldwide economy.
Posted Content
Detecting Earnings Management
TL;DR: In this paper, the authors evaluate alternative models for detecting earnings management by comparing the specification and power of commonly used test statistics across the measures of discretionary accruals generated by each model.