The association between corporate governance and earnings quality: Further evidence using the GOV-Score

Jiang, Wei; Lee, Picheng; Anandarajan, Asokan

doi:10.1016/j.adiac.2008.08.011

Cited by 138 publications

(140 citation statements)

References 35 publications

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“…Earlier studies documented that managers with high debt ratios have strong incentives to utilize income increasing accruals to lower the contractual debt obligations (Ali, Salleh & Hassan, 2008;Jiang, Lee & Anandarajan, 2008). In addition, there is an inverse relationship between financial leverage and earnings management (Ching, Firth & Rui, 2002;Park & Shin, 2004;Yang, Lai & Tan, 2008).…”

Section: Control Variablesmentioning

confidence: 99%

The Effects of Corporate Ownership Structure and Board Size on Earnings Management: Evidence from Turkey

Aygün¹,

İç²,

Sayim³

2014

IJBM

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This study investigates the impact of corporate ownership structure and board size on earnings management for a sample of Turkish firms registered on the Istanbul Stock Exchange (ISE) for the period of 2009 to 2012. The corporate ownership structure is measured with two variables: managerial ownership and institutional ownership. The board size can be defined as the number of members in the board. This study also uses three controlled variables: return on assets, size of the firm and financial leverage. The adjusted Jones Model (Dechow, Sloan and Sweeney, 1995) and the multivariate regression technique are utilized to examine the effect of corporate ownership structure and board size on earnings management. The results consistent with the previous studies show that the institutional ownership and the board size have a negative significant effect on the earnings management while the effect of the managerial ownership on the earnings management has positively statistically significant. The findings also reveal that the return on assets has a positively statistically significant effect on earnings management. However, the impact of the financial leverage on earnings management is negatively statistically significant.

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Section: Control Variablesmentioning

confidence: 99%

The Effects of Corporate Ownership Structure and Board Size on Earnings Management: Evidence from Turkey

Aygün¹,

İç²,

Sayim³

2014

IJBM

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“…To control size effects (FS), the natural logarithm for the book value of total assets is included as a proxy for the size of the firm. Jiang et al (2008), suggest that leverage changes may have different impacts on value and earnings quality. Dimitropoulos and Asteriou (2010) calculate leverage (LVG) as a total long term debt divided by total assets.…”

Section: Control Variablesmentioning

confidence: 99%

“…Country effect is also important in developing the relationship between corporate governance and earnings quality and this relationship is strong in developed economies as compared to those developing, with weaker investor protection (Gaio & Raposo, 2014). Jiang, Lee, and Anandarajan (2008), studies the relationship between corporate governance and earnings quality taking a comprehensive measure of corporate governance and absolute discretionary accruals as the proxy for earnings quality on the 4,311 firm-year observations over the period [2002][2003][2004]. Using multivariate analysis, they show that the corporate governance score is negatively associated with discretionary accruals and positively associated with earnings quality.…”

Section: The Nature Of Relationship Between Corporate Governance and mentioning

confidence: 99%

Earnings Quality: A Missing Link between Corporate Governance and Firm Value

Latif¹,

Bhatti²,

Raheman³

2017

BER

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“…There are a considerable number of studies (see for example Chang & Sun (2010), Chtourou, Bedard, & Courteau (2001), Jiang, Lee, & Anandarajan (2008), Klein (2002), Larcker, Richardson, & Tuna (2007), Xie, Davidson, & DaDalt (2003) in the U.S; Baxter& Cotter (2009), Davidson, Goodwin-Stewart, & Kent (2005) in Australia; Peasnell, Pope, & Young (2005) in the UK. ; Bradbury, Mak, & Tan (2006), Rusmin (2010), Saleh, Iskandar, & Rahmat (2007), Siregar & Utama (2008) in the Asian Countries) which document that the effectiveness of corporate governance mechanisms affect the EM practices of widely held public firms, however there are relatively less studies (Prencipe & Bar-Yosef, 2011;Jaggi, Leung, & Gul, 2009) which investigates whether the measures of corporate governance have the same effect on the level of EM when ownership is not widely dispersed, and in particular when ownership is concentrated in the hands of families.…”

Section: Introductionmentioning

confidence: 99%

Corporate Governance, Family Ownership and Earnings Management: Emerging Market Evidence

Adıgüzel

2013

AFR

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Earnings management (EM) is particularly important for family-firms which are exposed to more severe type-II agency conflicts between minority and majority shareholders than non-family firms. This study investigates the effectiveness of independent boards, audit committees and the presence of an internal audit function (IAF) in monitoring and controlling EM in family-owned firms. Overall, the results suggest that total accruals management is lower in family-owned than in non-family-owned firms, but that there is no difference in the direction of accruals. Family ownership is also found to reduce the monitoring effectiveness of independent boards and IAFs regarding earnings management.

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The association between corporate governance and earnings quality: Further evidence using the GOV-Score

Cited by 138 publications

References 35 publications

The Effects of Corporate Ownership Structure and Board Size on Earnings Management: Evidence from Turkey

The Effects of Corporate Ownership Structure and Board Size on Earnings Management: Evidence from Turkey

Earnings Quality: A Missing Link between Corporate Governance and Firm Value

Corporate Governance, Family Ownership and Earnings Management: Emerging Market Evidence

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