Article ID Journal Published Year Pages File Type
5092993 Journal of Contemporary Accounting & Economics 2007 33 Pages PDF
Abstract
This study investigates whether corporate governance characteristics, mandated by the Corporate Governance Best-Practice Principles (CGBPP) for companies listed in Taiwan, are associated with earnings management. In particular, we examine whether the independence, financial expertise, and voluntary formation of independent directorships (supervisorships) are associated with the absolute value of discretionary accruals. Our findings suggest that the independence of supervisors, the financial expertise of independent directors, and the voluntary formation of independent directorships (supervisorships) are associated with a lower likelihood of earnings management. These findings are stronger after the CGBPP was enacted, suggesting that the implementation of CGBPP has lowered the likelihood of earnings management.
Related Topics
Social Sciences and Humanities Business, Management and Accounting Business, Management and Accounting (General)
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