Corporate Governance and Earnings Management: A Meta-Analysis

2009 ◽  
Vol 17 (5) ◽  
pp. 594-610 ◽  
Author(s):  
Emma García-Meca ◽  
Juan P. Sánchez-Ballesta
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Meta Analysis

Audit committee effectiveness, audit quality and earnings management: a meta-analysis

2016 ◽  
Vol 58 (2) ◽  
pp. 179-196 ◽  
Author(s):  
Zgarni Inaam ◽  
Halioui Khamoussi
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Audit Quality ◽  
Good Governance ◽  
Meta Analysis ◽  
Negative Relationship ◽  
Real Earnings Management ◽  
Institutional Setting ◽  
Content Type

Purpose – Many researchers, in several contexts, have investigated the influence of audit committee effectiveness and audit quality variables on reducing the extent of earnings management, and empirical evidence is rather inconsistent. Design/methodology/approach – The aim of this paper is to meta-analyze the results of 58 prior studies that examined whether differences in results are related to moderating effects associated with corporate governance mechanisms or measures of earnings management. Findings – The findings show that the meta-analysis identifies many significant relationships. The independence of the audit committee, its size, expertise and the number of meetings have a negative relationship with earnings management. Similar negative relationships exist between auditor size, specialization and earnings management. Research limitations/implications – This study contributes to the corporate governance literature. Further, recognizing the function of an audit committee and audit quality shows the value of considering an institutional setting in governance research. This study is significant to academic and practitioner literatures, policy makers and professional accounting bodies as it shows that governance reforms promote companies to adopt good governance practices. The results also give useful information to investors in examining the effect of audit committee characteristics and audit quality on earnings quality. Originality/value – This study extends existing research on audit committee and audit quality to oversee both accrual and real earnings management using meta-analysis. Thus, this study has the potential to help stakeholders, board of directors, regulators and auditors, who are related with enhancing the supervision of firms and reducing the opportunities given to managers, to engage in earnings management.

scholarly journals A meta-analysis of the association between earnings management and audit quality and audit committee effectiveness

2008 ◽  
Vol 6 (Special Issue 1) ◽  
pp. 48-56
Author(s):  
Mark I. Hwang ◽  
Jerry W. Lin
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Empirical Evidence ◽  
Audit Committee ◽  
Audit Quality ◽  
Meta Analysis ◽  
Important Research ◽  
Analysis Techniques ◽  
Research Stream

Earnings management is of great concern to corporate stakeholders. While numerous studies have investigated various determinants of earnings management relating to corporate governance and audit quality, empirical evidence on their effects is rather inconsistent. Employing meta-analysis techniques, this research integrates and evaluates results from 27 prior studies. All eleven variables examined show a significant effect on earnings management. Researchers are encouraged to build on our results to continue this important research stream.

scholarly journals Relationship Between Firm Valuation, Business Practices and Earnings Management: A Meta-Analysis

2019 ◽  
Vol 14 (1) ◽  
pp. 115-134
Author(s):  
Ajay Ranjitha ◽  
◽  
R Madhumathi ◽  
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Financial Constraints ◽  
Meta Analysis ◽  
Negative Relationship ◽  
Product Market ◽  
Firm Valuation ◽  
Business Practices ◽  
Diversification Strategy ◽  
Significant Negative Relationship

The objective of this paper is to meta-analyze the result of relevant literature capturing the relationship measured in terms of correlation coefficient between valuation and earnings management; business practices (corporate governance) and earnings management; select business practices (financial constraints, credit quality, diversification strategy, product market compeition) and earnings management. We examined 30 empirical studies for the period 2006 to 2015 reflecting 53 correlations among the variables. The result indicates that corporate governance measured using governance index, audit opinion, institutional ownership, family ownership, promoter ownership, dual share, board size, CEO duality and board index have a significant negative relationship with earnings management. This signifies that an effective governance mechanism reduces the extent of earnings management in the firm. The moderator analysis confirmed that the result is similar across different measures of earnings management. In addition, select business practices (product market competition, financial constraints, credit ratings, diversification strategy) show a significant negative relationship with earnings management. Keywords: earnings management, firm valuation, business practices, meta-analysis

scholarly journals CORPORATE GOVERNANCE DAN MANAJEMEN LABA PADA BEBERAPA PENELITIAN SKRIPSI PERGURUAN TINGGI, STUDI META ANALISIS

Equity ◽  
2019 ◽  
Vol 21 (1) ◽  
pp. 35
Author(s):  
Angeline Angeline ◽  
Carmel Meiden
Keyword(s):  
Higher Education ◽  
Corporate Governance ◽  
Earnings Management ◽  
Meta Analysis ◽  
Sampling Technique ◽  
Manufacturing Companies ◽  
Analysis Technique ◽  
Board Directors ◽  
Independent Variable ◽  
Observation Method

Topic about corporate governance effect on earnings management has been researched by many researcher and still exist until now. The existing research provides both consistent and inconsistent results with different levels of significance. This study aims to integrate thesis results of higher Education related to the topic of corporate governance effect on earnings management in Indonesia period 2004-2014. Data collection method use observation method with as the output thesis. The sample of this research is 23 thesis student of higher education. The sampling technique is purposive sampling technique. Researcher use meta analysis technique to integrate the result of the thesis research and show conclusions related to the effect of corporate governance on earnings management. The result of this research shows that managerial ownership, institutional ownership, the size of the board directors and the size of board commissioners effect earnings management. The correlation of the weak independent variable to the dependent variable is shown by the average correlation value below 0.25. In addition, this study also proves that the validity of agency theory in several manufacturing companies, banking, LQ45 in the study period 2004 - 2014.

scholarly journals CORPORATE GOVERNANCE DAN MANAJEMEN LABA PADA BEBERAPA PENELITIAN SKRIPSI PERGURUAN TINGGI, STUDI META ANALISIS

Equity ◽  
2019 ◽  
Vol 21 (1) ◽  
pp. 35
Author(s):  
Angeline Angeline ◽  
Carmel Meiden
Keyword(s):  
Higher Education ◽  
Corporate Governance ◽  
Earnings Management ◽  
Meta Analysis ◽  
Sampling Technique ◽  
Manufacturing Companies ◽  
Analysis Technique ◽  
Board Directors ◽  
Independent Variable ◽  
Observation Method

Topic about corporate governance effect on earnings management has been researched by many researcher and still exist until now. The existing research provides both consistent and inconsistent results with different levels of significance. This study aims to integrate thesis results of higher Education related to the topic of corporate governance effect on earnings management in Indonesia period 2004-2014. Data collection method use observation method with as the output thesis. The sample of this research is 23 thesis student of higher education. The sampling technique is purposive sampling technique. Researcher use meta analysis technique to integrate the result of the thesis research and show conclusions related to the effect of corporate governance on earnings management. The result of this research shows that managerial ownership, institutional ownership, the size of the board directors and the size of board commissioners effect earnings management. The correlation of the weak independent variable to the dependent variable is shown by the average correlation value below 0.25. In addition, this study also proves that the validity of agency theory in several manufacturing companies, banking, LQ45 in the study period 2004 - 2014.

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