Depressing earnings management in Palestinian corporations: the role of audit quality, audit committee, and accounting conservatism

Alia, Muiz Abu; Abdeljawad, Islam; Yaaqbeh, Mohammad

doi:10.1504/ijrm.2020.109419

Cited by 18 publications

(16 citation statements)

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“…The table also illustrates that almost half of the sample firms (47.5 percent) have established an AC. It is consistent with Alia et al (2020), who similarly found that 47 percent of listed non-financial Palestinian firms had an AC. This finding suggests that these firms have complied with the PCCG recommendations.…”

Section: Descriptive Statistics Of Ac Characteristicssupporting

confidence: 89%

“…Further, AC remains voluntary for listed firms, which explains why more than half of the sample firms (52.5 percent) have yet to establish an AC (Alia et al, 2020). It also means that they have not complied with the PCCG.…”

Section: Discussionmentioning

confidence: 99%

“…These results align with findings from Palestine, e.g., Asmar et al (2018) and EL-Nabi (2016), Jordan (AbuSiam (2015)), and the United Kingdom (Habbash, 2010), which revealed that the mean AC size was around three members. The findings also indicate that more than half (52.5 percent) of the listed nonfinancial firms have not complied with the PCCG recommendation to establish an AC (Alia et al, 2020).…”

Section: Descriptive Statistics Of Ac Characteristicsmentioning

confidence: 93%

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A Descriptive Analysis of Corporate Governance Mechanisms and Earnings Management in Palestine

Aljadba¹,

Nawai²,

Laili³

2022

JAI

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Research aims: The article aims to describe corporate governance (CG) characteristics and the extent of earnings management (EM) practices in non-financial firms listed on the Palestine Exchange from 2011 to 2018.Design/Methodology/Approach: The study employed the quantitative methodology. Collected data were summarized quantitatively using descriptive analysis with STATA 14. CG data were retrieved manually from published annual financial reports, while financial data for the EM calculation were collected from Thomson ONE.Research findings: Listed non-financial firms in Palestine only moderately complied with the Palestinian Code of Corporate Governance. Some Palestinian firms have also established an audit committee, one of the most important corporate governance mechanisms.Theoretical contribution/Originality: The findings provide insight into CG and EM in Palestine for regulators and policymakers. Practitioner/Policy implication: The results can assist policymakers in strengthening existing regulations and updating the current code of CG or introducing new policies to mitigate EM.

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Section: Descriptive Statistics Of Ac Characteristicssupporting

confidence: 89%

Section: Discussionmentioning

confidence: 99%

Section: Descriptive Statistics Of Ac Characteristicsmentioning

confidence: 93%

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A Descriptive Analysis of Corporate Governance Mechanisms and Earnings Management in Palestine

Aljadba¹,

Nawai²,

Laili³

2022

JAI

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“…In most companies, the audit committee is established to control the preparation of financial statements. Overall, the literature of recent decades views the audit committee as the key corporate governance mechanism in assessing earnings quality for companies in both developed market economies and emerging markets (Klein, 2002;Davidson et al, 2004;Garcia-Meca and Sanchez-Ballesta, 2009;Qi and Tian, 2012;Mouselli et al, 2014;Lin et al, 2015;Kapoor and Goel, 2017;Katmon and Al Farooque, 2017;Abdeljawad et al, 2020;Alzeban, 2020;Chaudhry et al, 2020).…”

Section: Earnings Management and Corporate Governancementioning

confidence: 99%

“…An additional call for the broader analysis of country and institutional specifics stems from the rise of emerging economies and growing interest from investors, analysts and scholars in companies from these markets. Recent years have been characterized by ongoing discussion of the peculiarities of earnings management and the effects of corporate governance arrangements (such as the audit committee) in companies with large blockholders, especially from economies with relatively weak investor protection (Lin et al , 2015; Khalil and Ozkan, 2016; Bao and Lewellyn, 2017; Kapoor and Goel, 2017; AlQadasi and Abidin, 2018; Alia et al , 2020).…”

Section: Introductionmentioning

confidence: 99%

Audit committee composition and earnings management in a specific institutional environment: the case of Russia

Nikulin

Smirnov

Sviridov

et al. 2022

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Purpose The purpose of this paper is to investigate the specifics of the relationship between audit committee characteristics and earnings management in Russian listed companies. This research is driven by the possibility of placing this relationship within the context of a specific institutional environment for company performance. Design/methodology/approach The authors apply a panel study of 184 Russian listed companies for the period 2014–2018. In addition to the standard fixed effects model, the authors test the results for potential endogeneity with two-stage least squares (2SLS) analysis. Findings The results show that audit committee representation on the board of directors results in some mitigation of earnings management. Results reveal that a higher level of audit committee independence and the presence of financial expertise on the committee are associated with lower earnings management. However, companies with relatively busy directors on audit committees are more inclined to practice earnings management. The study’s findings hold after testing for endogeneity of audit committee independence. The authors also reveal that some audit committee characteristics (for example, audit committee independence; its level of expertise) alleviate earnings management in listed state-owned companies (SOEs) more strongly than in listed non-SOEs. Originality/value The results add to the ongoing debate on the role of corporate governance mechanisms in mitigating earnings management in emerging markets by taking into account the type of ownership (state-owned vs private) as a moderating variable. This study reveals, in particular, that the effect of certain audit committee characteristics on earnings management is more prominent in listed SOEs than in listed non-SOEs.

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The Relationship Between Disclosure Quality and Firm Performance: Evidence from Companies Listed in Palestine Exchange

Alia

Asmar²,

Ali³

2022

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Depressing earnings management in Palestinian corporations: the role of audit quality, audit committee, and accounting conservatism

Cited by 18 publications

References 0 publications

A Descriptive Analysis of Corporate Governance Mechanisms and Earnings Management in Palestine

A Descriptive Analysis of Corporate Governance Mechanisms and Earnings Management in Palestine

Audit committee composition and earnings management in a specific institutional environment: the case of Russia

The Relationship Between Disclosure Quality and Firm Performance: Evidence from Companies Listed in Palestine Exchange

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