Open AccessEffects of Board Size, Board Composition and Dividend Policy on Real Earnings Management in the Jordanian Listed Industrial Firms
Author(s) -
Yousef Shahwan,
Tareq Hammad Almubaydeen
Publication year - 2020
Publication title -
international journal of financial research
Language(s) - English
Resource type - Journals
eISSN - 1923-4031
pISSN - 1923-4023
DOI - 10.5430/ijfr.v11n4p195
Subject(s) - accounting , shareholder , business , database transaction , dividend , audit , dividend policy , earnings , composition (language) , on board , value (mathematics) , dividend payout ratio , audit committee , bridging (networking) , earnings management , finance , corporate governance , database , statistics , linguistics , philosophy , mathematics , computer science , engineering , aerospace engineering , computer network
Earning manipulation has been a normal transaction among the global businesses, in which business organization sees it as beneficial, thereby turning black eyes to its negative impact on the general economy. This study aimed at examining the impact of board size, Board composition and dividend policy on real earnings management in the listed Jordanian industries. 8 years data (2010 to 2018) was extracted from the audited financial reports of the selected firms. Data was analyzed using Structural Model via AMOS version 26 and SPSS version 21. The findings revealed a positive and significant effect between board size, board composition and real earning management at p-value 0.05 (two-tailed). This study has immensely contributed towards bridging the gap in the existing knowledge as it documented a new finding. The benefits of these findings cross over the managers, shareholders, board of directors, investors, the Jordanian government and all other relevant institute for the buildup of the healthiest industrial sector and better economy.