Earnings Management And Privatisations: Evidence From Pakistan Evidence From Pakistan

Iqbal, Abdullah; Khan, Iram A.; Ahmed, Zeeshan

doi:10.30541/v54i2pp.79-96

Cited by 5 publications

(2 citation statements)

References 31 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Likewise, prior studies document that firms whose CEO acts as the chairman of the board are likely to be a subject to enforcement actions by influential stakeholders for allegedly engaging in earnings manipulations (El Diri et al, 2020). For example, Klein (2002), Sarkar, Sarkar, and Sen (2008), Gulzar (2011), Roodposhti and Chashmi (2011), Soliman and Ragab (2014), Uwuigbe, Peter, and Oyeniyi (2014), Latif and Abdullah (2015); Iqbal, Khan, and Ahmed (2015); Al‐Haddad and Whittington (2019) suggest that CEO‐duality appeared to be positively associated with discretionary accruals manipulations. This implies that CEO‐duality improves the CEO's power and increases managerial discretion opportunities (Fama & Jensen's, 1983; Jensen's, 1993).…”

Section: Background Theory Empirical Literature Review and Hypothesis...mentioning

confidence: 99%

Corporate environmental disclosure and earnings management—The moderating role of corporate governance structures

2021

View full text Add to dashboard Cite

Our study examines whether internal corporate governance (CG) mechanisms moderate the relationship between a firm's engagement in corporate environmental disclosure (CED) and earnings management (EM) practices in an emerging economy. Using a sample of 100 Jordanian listed firms from 2010 to 2014 (i.e., 500 firm‐year observations), our findings reveal that while the relationship between CED and earnings manipulations is negative, the links between CG arrangements and EM are heterogeneous in that they might have either reduced or increased earnings manipulations in Jordan. Furthermore, some CG structures, such as board size, managerial, and institutional ownership structures have moderating effects on the CED‐EM nexus. Our research highlights the significance of considering internal CG mechanisms to explain the link between CED and EM in the context of emerging economies. Our results help to explain and place into setting the earlier mixed results on the association between CED and earnings manipulations and most importantly add to the debate about whether CG structures detrimental to the CED‐EM nexus. This study allows for a richer understanding of how managers respond to CED initiatives and CG reforms in relation to reducing earnings manipulations, which offers policymakers, board directors and managers, a set of context‐specific recommendations related to the crucial need for more concerted efforts to ensure corporate sustainability in emerging economies.

show abstract

Section: Background Theory Empirical Literature Review and Hypothesis...mentioning

confidence: 99%

Corporate environmental disclosure and earnings management—The moderating role of corporate governance structures

2021

View full text Add to dashboard Cite

show abstract

“…It is because, the initial shock of privatisation is over, and they can benefit in terms of better wages or of the increase employment opportunities. Iqbal, Khan, and Ahmed (2015) found that managers of the firms slated for privatisation were engaged in earnings management to inflate the financial worth of the firms to maximise the privatisation proceeds.…”

Section: Effect Of Privatizationmentioning

confidence: 99%

A Systematic Approach to the Motivations for Earnings Management: A Literature Review

Callao

Jarne

Wróblewski

2021

International Journal of Emerging Trends in Social Sciences

View full text Add to dashboard Cite

Earnings management literature attempts to understand why managers manipulate earnings. Our paper presents a review of growing body of literature on motivations for the earnings manipulation. In consequence, our objective is to provide an ample classification of the reasons. A selection of leading papers was reviewed systematically from 1985 to early 2019 resulting in 383 articles. The results of the paper are important for both theoretical and empirical researches on the earnings management. For one side, we offer a theoretical discussion on the incentives and factors; on the other side, the paper aims to highlight recent progresses in the field. Screening, classifying and systematic review of earnings management literature do not only generate a structured overview of the work performed in this area during more than thirty years, but it also provides insights for further research. Our findings confirm that earnings management topic remains a fertile ground for academic research. Second, although there are many possible motives for managing earnings, the spotlight has been mainly on those incentives that are related to the stock market. Third, in terms of the factors and characteristics of the environment, the impact of institutional factors (investor protection, ownership concentration, legal enforcement) is especially accentuated by the authors. Finally, our research confirms that there are still many other opportunities to research. Therefore, in the last section we identify potential line of investigations.

show abstract

Do corporate sustainability practices mitigate earnings management? The moderating role of firm size

Rahman,

Zahid,

Khan

et al. 2024

Bus Strat Env

View full text Add to dashboard Cite

The majority of the prior empirical literature that inquired about the direct role of corporate sustainability practices (CSP) as a composite construct in mitigating earnings management (EM) has produced equivocal outcomes. Therefore, this study examines the role of CSP not only as a combined construct but also as its three separate dimensions—social, economic, and environmental sustainability in restricting EM directly and with the distinct moderation of firm size that has rarely been probed in the past. Using the data of 255 Pakistani companies from 2018 to 2022, the estimations of ordinary least squares with panel‐corrected standard errors revealed that CSP and its separate dimensions significantly control accruals‐based earnings management, and all these relationships are further amplified by the moderation of firm size. However, neither CSP nor any of its dimensions, either directly or with the moderation of firm size, have a significant role in reducing real‐based earnings management. The additional analysis also validated these findings but only for large companies rather than small companies after splitting the sample based on the firm's size. The findings endorse the stakeholder theory and ethical perspective but oppose managerial opportunism in Pakistan. Besides enriching the existing body of knowledge, this research also offers several important implications for the theory, methodology, practice, and policy.

show abstract

Earnings Management And Privatisations: Evidence From Pakistan Evidence From Pakistan

Cited by 5 publications

References 31 publications

Corporate environmental disclosure and earnings management—The moderating role of corporate governance structures

Corporate environmental disclosure and earnings management—The moderating role of corporate governance structures

A Systematic Approach to the Motivations for Earnings Management: A Literature Review

Do corporate sustainability practices mitigate earnings management? The moderating role of firm size

Contact Info

Product

Resources

About