کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
967893 | 1479357 | 2013 | 15 صفحه PDF | دانلود رایگان |
Since the Sarbanes-Oxley Act was enacted in U.S., there has been a general tendency to globally harmonize regulations and practices of board governance. The purpose of this study is to compare among countries how well the board of directors constrains earnings management. Using a sample of firms from 23 countries, we document some evidence that higher outside directorship on the board is associated with lower earnings management in the international context. We also find that there is no significant difference in the effectiveness of board outside directorship in constraining earnings management between high and low investor protection countries. Our findings mitigate a concern that harmonized corporate governance in low investor protection countries may not work.
► Higher outside directorship is associated with lower earnings management.
► There is no difference in the effectiveness of outside directorship across countries.
► Our findings support the global harmonization of corporate governance.
Journal: Journal of Multinational Financial Management - Volume 23, Issues 1–2, April 2013, Pages 19–33