CORPORATE GOVERNANCE MECHANISMS AND EARNINGS MANAGEMENT DURING PRE- AND POST- CODE PERIOD OF CORPORATE GOVERNANCE IN PAKISTAN
DOI:
https://doi.org/10.61841/8p9bf894Keywords:
Accrual earnings management,, CEO duality, fixed effect model, board activity.Abstract
Large number of corporate accounting scandals around the world reduces the trust and reliability of financial reports. The codes of corporate governance provide a common standard for governing a corporate business. The objective of this research study is to investigate the impact of various corporate governance mechanisms on accrual and real earnings management during pre-and post-code period of corporate governance in Pakistan. The study utilized data from non-financial firms listed on Pakistan Stock Exchange (PSX) for the period 2008-2018. The results from Fixed effect model revealed that audit committee independence, board activity are significantly negative related and CEO duality is significantly positively related with accruals earnings management in the post-code period. Whereas, institutional ownership has significant negative relationship and CEO duality have significant positive relationship with real earnings management in the post-code period of corporate governance in Pakistan. The findings have important implications for investors, regulators and legislators in order to improve governance mechanism and reducing the incidence of earnings management.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
