Tag Archives: Accruals

Board Characteristics and Earnings Management: Empirical Analysis of UK Listed Companies (Published)

Present study investigates to find out the associations between characteristics of the boards and the level of earnings management. For the investigation, level of the earnings management has taken from UK listed companies during 2012 to 2016. Moreover, the abnormal accruals are considered as the proxy of the level of earnings management, and which show the level of earnings management for the companies. The study uses Modified-Jones model to measure the abnormal accruals, and uses Random effects model to find out whether the characteristics of the boards are related with the level of earnings management. By running the regression, it finds out that the CEO duality and board size are negatively related the level of earnings management at the significant level. However, the study fails to find out the board meetings, percentage of independent directors and the percentage of female directors in the board is significantly associated with the level of earnings management.

Keywords: Accruals, Corporate Governance, Earnings Management, dependent variables, independent variables

Effective Audit Committee, Audit Quality and Earnings Management Before and After Financial Security Law Adoption (Review Completed - Accepted)

This study examines the interaction between the effectiveness of audit committee and external audit functions to mitigate the earnings management in the Tunisian companies before and after financial security law adoption. Using 261 firm-year observations during the period 2001-2009, our results document a substitute effect between the presence of Big four auditor and effective audit committee to reducing the discretionary accruals in the Pre-law n° 2005-96 periods. We also find a link of complementary between the score of effectiveness of audit committee and industry specialist auditor to constrain earnings management. Finally, our findings show a complementary relation between the effectiveness of audit committee and audit tenure, after the passage of law n° 2005-96

Keywords: Accruals, Audit Committee, Audit Quality, Law N° 2005-96