This study examines the relationship between corporate social responsibility (CSR) reporting, board gender diversity (BGEND) and real earnings management (REM). It also investigates how the relationship between CSR reporting and REM differs between gender-diverse and non-diverse firms. Content analysis was used to measure CSR reporting. The ordinary least square regression is used to examine the relationships for a sample of 475 firm-year observations listed on the Amman Stock Exchange during 2011-2016. The results show that CSR reporting is significantly and negatively associated with REM in the Jordanian market. Nevertheless, BGEND is negatively and significantly related to REM. More importantly, the results show that BGEND moderates the CSR-REM relationship. Further,

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Purpose This study aims to investigate the monitoring role of internal audit function (IAF) on real earnings management (REM) practices. It examines the effect of investment in IAF (IIAF) and IAF sourcing arrangements on REM, unlike prior literature which has mainly examined the effects of IIAF on accrual-based earnings management. Design/methodology/approach This study uses a sample of 1,056 observations from an emerging market, Malaysia, between 2013 and 2016. Feasible generalised least square (FGLS) regression is used to analyse the data. To corroborate the results of this study, the authors use an ordinary least square (OLS) regression model with robust standard errors adjusted and also consider alternative REM measures. Findings The results of this study suggest that IIAF has a significant negative relationship with REM practices. Further, in-house IAF sourcing has a significant negative association with REM. The additional analysis supports the main results confirming the essential role of IAF in reducing REM in the Malaysian market. Practical implications The evidence relates to the important role of IAF in mitigating REM practices. High-quality of IAF impairs managers’ ability to manage earnings in their own interests. The findings may be useful in informing regulators, managers, shareholders and other investors, as well as researchers, about improving the role of IAF. Originality/value This study contributes to the existing literature by providing the first evidence of the significant role of IIAF and IAF sourcing arrangements in mitigating REM in an emerging country.

This study aims to measure the level of corporate social responsibility disclosure (CSRDL) in an emerging market, Jordan. It also aims to investigate the effect of audit committee (AC) features on CSRDL. The study’s data, obtained from annual reports, comprises 576 company-year observations from industrial and services companies listed on the Amman stock exchange for the period 2011 to 2016. Content analysis is used to measure CSRDL, and multiple regression techniques to test the proposed relationships. The results show that CSRDL among Jordanian listed companies is low, suggesting that companies have less incentive to disclose CSR practices. Additionally, AC independence and AC ownership positively influence CSRDL. The findings from this research have limited generalisability due to the specific characteristics of the sample, which is from a developing country. However, they have implications and value for policymakers and different stakeholders interested in improving CSR initiatives. The findings are also significant in reducing agency costs and enhancing corporate transparency. Within the limits of the authors’ knowledge, this research is among the first to provide preliminary evidence on the effect of AC features on CSR disclosure in an emerging market context, specifically in Jordan.