Research question: This research aims to: 1. Determine which corporate governance mechanisms are most relevant in constraining earnings management and 2. Explain whether differences in results found in previous literature are attributable to moderating effects related to the legal system (common vs civil law). Motivation: One research topic of interest in the last two decades has been the effect of corporate governance mechanisms on earnings management. Idea: This research constitutes an extension of the study conducted by Zgarni and Haloui (2016) whose subject matter deals with only two corporate governance mechanisms, audit committee and audit quality, whereas the present paper contribution consists of testing the relevance of the findings achieved by Zgarni and Haloui (2016) after three years of study. Data: The study is based on a metaanalysis of 75 studies, the research approach being derived from Hunter et al. (1982). Research Findings: The empirical results show that the board of directors, the audit committee and audit size are statistically significant in reducing earnings management. Our findings emphasize the need to explicitly consider the influences of legal and institutional settings when analyzing the interactions between corporate governance and earnings management. The issues discussed in this article should be relevant to improve the supervision of companies and mitigating the earnings management. Especially, we provide some interesting insights to stakeholders, government regulators, banks, academics and research professionals.
The quality of decision making and the level of performance are greatly affected by the accuracy of both production and non-production costs. While both components are important in increasing the accuracy of product costs in decision making, research into the inclusion of non-production costs is limited. Therefore, this research aims to examine the determinants of the addition of non-production costs when calculating product costs for use in decision making. This research utilized a questionnaire survey strategy to collect data from Saudi industrial operating units. The results of this research show that the level of cost data importance and its usage in decision making has no effect on adding non-production costs when calculating product costs, while the level of cost system complexity does. The results also add to the cost system design literature with regard to the addition of non-production costs when calculating product costs in the decision-making process.
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