Does Corporate Governance Constrain Earnings Management in an Unstable Economic and Political Environment?

Asian Economic and Financial Review

article

Yousef Hassan¹  Ahmed Abousamak²  Rafiq Hijazi³ 

[1] Department of Accounting, College of Business and Economics, Birzeit University;College of Business, Al Ain University, United Arab Emirates, Suez Canal University;Department of Mathematics and Statistics, College of Natural and Health Sciences, Zayed University

关键词: Corporate governance;    Discretionary accruals;    Earnings management;    Board characteristics;    Ownership structure;    Palestine exchange;    Palestine.;   

DOI  :  10.55493/5002.v12i12.4670

学科分类：社会科学、人文和艺术（综合）

来源: Asian Economic and Social Society

【 摘 要 】

The purpose of this research is to examine the effects of corporate governance structures on earnings management behavior in a weakly governed and politically unstable environment. A panel of data from 35 non-bank companies listed on the Palestine Exchange between 2012 and 2019 was employed. A fixed effects regression model was used to examine the impact of certain board characteristics (board size, board meetings, and audit committee formation) and ownership structures (institutional ownership, foreign ownership, and ownership concentration) on earnings management in the volatile and risky political and economic environment of Palestine. The findings indicate that corporate governance and ownership systems in Palestine appear to be ineffective in constraining earnings management practices. None of the board attributes appear to constrain earnings management practices. However, there is weak evidence to show that ownership concentration has some effect in curbing earnings manipulation. The findings of this study are expected to increase awareness among Palestinian regulators, investors, and other policymakers regarding the role of boards of directors and institutional and foreign shareholders in monitoring Palestinian listed companies to enhance corporate governance and the quality of financial reporting.

【 授权许可】

CC BY