The Effects of Corporate Governance Mechanisms on Earnings Management in Egyptian listed firms in the Stock Market

Effects of Corporate Governance on Creative Accounting Practices: Evidence from NSE-listed Companies in India

“…The audit committee has a positive and does not significantly impact creative accounting practice, demonstrating the number of auditors present among the audit committee size does not evaluate if managers indulge in accounting manipulation in financial reporting practice. The study result is in agreement with Abata and Migiro (2016), Hassan et al (2020) and Yang et al (2012); on the contrary, Alia et al (2020) and Sani and Owoade (2021) stated that an increase in audit committees is likely to reduce creative accounting practice and unethical practice of manipulation. Audit independence has a significant negative influence on creative accounting practice, exhibiting that increasing the number of independent auditors could reduce the practice of unethical accounting manipulation in financial reports.…”

“…In this study, the effect is insignificant (Abata & Migiro, 2016; Paul et al, 2020; Sani & Owoade, 2021). On the contrary, Hassan et al (2020), Uadiale (2012) and Uwuigbe et al (2015) stated BI has a negative significant influence on earning management, indicating that board independent directors are likely to decrease the unethical practice of manipulation behaviour and earning management. The audit committee has a positive and does not significantly impact creative accounting practice, demonstrating the number of auditors present among the audit committee size does not evaluate if managers indulge in accounting manipulation in financial reporting practice.…”

“…Independent directors usually are considered appropriate decision-making and better monitoring than other directors because they have more diverse knowledge and expertise to act with the view of the company’s shareholder interest (Yang et al, 2012). Some researchers discovered a negative link between the board of independent directors and earning management (Hassan et al, 2020; Kolsi & Grassa, 2017). So they stated that larger independent directors in board constraints for possibility in firms engaged in earning manipulation.…”

“…The empirical evidence indicated a significantly negative relationship between corporate governance and creative accounting (Paul et al, 2020; Sani & Owoade, 2021). Abata and Migiro (2016), Abbott et al (2004), Baxter and Cotter (2009), Hassan et al (2020) and Xie et al (2003) found that failed to establish the relationship between the audit committee and earning management. Despite the conflicting outcomes of prior studies, the research hypothesis state that a larger audit committee is more effective in monitoring management reporting in firms and limits the possibility of accounting manipulation than a smaller size of the audit committee.…”

Corporate Governance Practices and Firm Performance in Savings and Credit Cooperative Societies in Nairobi County, Kenya

“…Board independence isa significant aspect of corporate governance, defined as the proportion of independent non-executive directors on corporate boards, calculated from the number of independent members divided by the number of members on the board (Jaidi, Wenhao, & Mohidin, 2022). Researcher notes that board independence is computed as the percentage of the total number of independent directors sitting in the board (Sethi, Sahu, & Maity, 2022).Scholars aver that board independence is measured by dividing the number of outside or non-executive directors by the total number of directors (Hassan, Soliman, Ragab, & Rageb, 2020). Some scholarly works posit that board independence refers to the state in which all or a majority of the members of a board of directors do not have a relationship with the company except as directors (Elms & Pugliese, 2022).…”