Impact of Corporate Governance Attributes on Earnings Management Practices – Evidence from Bangladeshi Commercial Banks
Year: 2025
Type: article
Abstract: Manuscript type: Research paper Research aims: This study aims to determine how corporate governance characteristics affect earnings management in in Bangladeshi banks. Design/Methodology/Approach: We adopt panel regression to evaluate the hypotheses from 493 firm-year observations. Modified Jones model is employed for investigating earnings management. Research findings: We explore that board size significantly and negatively affects earnings management strategies. Theoretical contribution/Originality: This study offers value by making the first-ever connection in Bangladesh between corporate governance characteristics and the earnings management of conventional and nonconventional banks. Practitioner/Policy implication: The results shed light on improved governance policies that may be beneficial to regulators, investors, and other stakeholders. Further, it raises more concern among auditors regarding banks’ uses of accruals considering their internal control systems. Research limitation: This analysis excludes Bangladesh’s fourth generation banks and concentrates only on four aspects of corporate governance. Furthermore, the political power within the bank is disregarded here, even though it has the potential to significantly affect the governance features of banks.
Authors: Afroja Akter, Oli Ahad Thakur
Institutions: Eastern University, Southeast University
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4412579046