Overview

Original Research

BOARD OF DIRECTORS CHARACTERISTICS AND EARNINGS MANAGEMENT: EVIDENCE FROM INDUSTRIAL JORDANIAN LISTED COMPANIES

YOUSEF IBRAHIM ABU-SIAM 1, and NUR HIDAYAH BINTI LAILI 2.

Vol 17, No 12 ( 2022 )   |  DOI: 10.5281/zenodo.7477085   |   Author Affiliation: Accounting Department, Faculty of Business, Applied Science Private University, Amman, Jordan 1; Faculty of Economics and Muamalat, Universiti Sains Islam Malaysia, Nilai, Malaysia 2.   |   Licensing: CC 4.0   |   Pg no: 1518-1535   |   To cite: YOUSEF IBRAHIM ABU-SIAM, and NUR HIDAYAH BINTI LAILI. (2022). BOARD OF DIRECTORS CHARACTERISTICS AND EARNINGS MANAGEMENT: EVIDENCE FROM INDUSTRIAL JORDANIAN LISTED COMPANIES. 17(12), 1518–1535. https://doi.org/10.5281/zenodo.7477085   |   Published on: 23-12-2022

Abstract

This study focuses on examining the relationship between the board of director's characteristics and earnings management. This study uses a secondary-data and the population study's consists of all industrial firms listed on Amman Stock Exchange (ASE) over the period 2017-2021. The results reveal that board independence is negatively associated with earnings management at significant level. Moreover, the results indicate that the board size and CEO duality are not significantly associated with earnings management. The results of this study could be useful to regulators in their attempts to constrain the incidence of earnings management and enhance the quality of monitoring mechanisms, especially in an environment where the capital market is still evolving and the legal protection and law enforcement is weak.

Keywords

Board Independnce, Board Size, CEO Duality, Earnings Management.