Open AccessCorporate Governance's Role in Mitigating Earnings Manipulations: Evidence from Asian Economies
Author(s) -
Yasar Abbas,
Zaheer Abbas
Publication year - 2021
Publication title -
global economics review
Language(s) - English
Resource type - Journals
eISSN - 2707-0093
pISSN - 2521-2974
DOI - 10.31703/ger.2021(vi-iv).04
Subject(s) - corporate governance , emerging markets , accounting , business , audit committee , stakeholder , earnings management , shareholder , panel data , accrual , audit , sample (material) , earnings , financial system , finance , economics , management , chemistry , chromatography , econometrics
The purpose of this research is to examine the relationship between corporate governance and earnings management in Asian emerging economies Pakistan,India, and Malaysia. The annual financial data of 196 listed non-financial firms for ten years (2010 - 2019) was used as a sample of the study. Panel data fixed-effect method was appropriate for this study. The findings of the current study established a negative association between corporate governance attributes (board of directors and the audit committee) and accrual earnings management. Boards and audit committees with the right characteristics boost stakeholder and shareholder loyalty and retention. Corporate governance is getting much significance in developing economies to establish the trust of regulators,investors, and economic analysts in emerging economies.