Work

Corporate Governance and Earnings Management an Empirical Evidence Form Pakistani Listed Companies

Year: 2009

Type: preprint

Abstract: The study examines the relationship between quality of Corporate Governance and Earnings Management. A set of listed Companies have been investigated to analyze the relationship for the year 2006. Quality has been measured by assigning weights to a set of related variables whereas earnings management has been quantified by discretionary accruals. Modified Cross Sectional Jones Model has been used to determine the Discretionary Accruals. Ordinary least square estimation indicates the presence of Positive relationship between corporate governance and earnings management. Results appear unconventional, It may be due to the transition phase through which the Pakistani Companies are passing after promulgation of code of corporate governance in 2002 which has created a tendency to increase discretionary accruals as a risk averse measure.

Source: SSRN Electronic Journal

Authors: Syed Zulfiqar Ali Shah, Safdar Ali Butt, Arshad Hassan

Institutions: International Islamic University, Islamabad, Mohammad Ali Jinnah University, Capital University of Science and Technology

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W1721154023

Cites: 19

Cited by: 100

Related to: 10