Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2022.2134902
Internal corporate governance mechanisms and earnings manipulation practices in MENA countries
Isam Saleh
Malik Abu Afifa
Abdallah Alkhawaja
Sažetak
This study has the objective of examining how internal corporate
governancemechanisms are related to earnings manipulation,measured
by real-based earnings manipulation (REM) and accrual-based
earnings manipulation (AEM). The internal corporate governance
mechanisms discussed in this study signify two main kinds of board
characteristics (board size and board independence) and three main
kinds of ownership structure (institutional ownership, foreign ownership
and business group affiliation). The study models were examined
from eight countries selected from the Middle East and North
Africa (MENA) region. A total of 480 non-financial firms listed
between 2012 and 2019 were examined. Based on panel data-based
generalised methods of moments (GMM) estimation, the findings
showed that institutional ownership in MENA nations limits the use
of REM and AEM. Additionally, we found that larger boards are more
likely to participate in REM practices. Board independence has a positive
association with REM and AEM. The results also reveal that business
group affiliation has a significant effect on both methods of
earnings manipulation. Foreign ownership does not seem to significantly
impact either of the two manipulation methods. Finally, these
results help regulators and policymakers pursue reforms to enhance
national governance quality in the MENA region.
Ključne riječi
Board characteristics; ownership structure; earnings management; MENA countries
Hrčak ID:
306686
URI
Datum izdavanja:
30.4.2023.
Posjeta: 275 *