Internal corporate governance mechanisms and earnings manipulation practices in MENA countries

Saleh, Isam; Afifa, Malik Abu; Alkhawaja, Abdallah

doi:10.1080/1331677x.2022.2134902

Cited by 7 publications

(3 citation statements)

References 98 publications

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“…In addition, Al-Haddad and Whittington (2019) stated that corporate ownership structure serves as a market that conducts empirical analysis to connect earnings manipulation with corporate governance. However, in contrast to the research conducted by Saleh et al (2022), companies in developing countries experience concentrated ownership, in which shareholders can use their control rights to gain personal benefits, which can affect earnings manipulation activities. A research conducted by Utama et al (2017) also discovered that the ownership structure of PLCs (public companies) in Indonesia is also concentrated.…”

Section: Corporate Governancementioning

confidence: 82%

“…In addition, Berry-Stölzle et al (2018) also stated that the negative relationship between CEO and earnings management. Saleh et al (2022) stated that board independence has a positive relationship with accrual-based and real earnings manipulation, board independence cannot control earnings manipulation practices. The research of Habib et al (2022) which found a relationship between Real Earnings Management (REM); ; Purwaningsih & Kusuma (2020); and Accruals Earnings Management (AEM) on earnings quality.…”

Section: Earnings Managementmentioning

confidence: 99%

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Earnings Management in Corporate Governance: A Systematic Literature Review

Wardani,

Saribu,

Kesuma

2023

Utsaha

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Increased profits will attract shareholders. In order to attract their attention, companies will conduct various ways about the financial health and company performance that are available in the public domain before they are publicized. Therefore, the company has the motivation to implement earnings management that can increase profits to improve its performance results. Therefore, this research aims to determine the impact of earnings management on corporate governance. This research method used a systematic literature review with Preferred Reporting Items for Systematic Reviews and Meta-analysis (PRISMA) guidelines for articles that have been published during 2010-2023. Around 170 articles were obtained from journal databases, such as Emerald Insight, Scopus, Science Direct, and others. Furthermore, data validation and testing were conducted to obtain 50 articles that could be used as the main research. The main point of this literature study is to examine the earnings management function in corporate governance in various published articles.

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Section: Corporate Governancementioning

confidence: 82%

Section: Earnings Managementmentioning

confidence: 99%

Earnings Management in Corporate Governance: A Systematic Literature Review

Wardani,

Saribu,

Kesuma

2023

Utsaha

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“…The final sample for this study is 327 non-financial firms from PSX after applying the inclusion and exclusion criteria as depicted in Table 1 Panel A. The financial firms have been excluded due to the difference in accrual procedures and accounting policies, as mentioned in the literature (Khan et al , 2022b; Khan and Kamal, 2022; Saleh et al , 2022). In addition to this, companies with missing annual reports, defaulter companies and those that were delisted were also excluded.…”

Section: Methodsmentioning

confidence: 99%

The same network auditor, family business groups and earnings manipulation: an evidence from emerging market

Khan

Kamal

2023

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Purpose This paper aims to examine whether family business groups’ (FBG) having the same network auditor among their affiliates mitigates earnings manipulation (EM). Design/methodology/approach This paper used unbalanced panel data from the years 2010–2019. The sample of the study is composed of 327 nonfinancial listed Pakistan Stock Exchange firms, consisting of 187 FBG-affiliated firms and 140 nonaffiliated firms. The ordinary least square and generalized least square regressions have been used to check the hypothesized relationship. Furthermore, the propensity score matching technique is used to ascertain comparable companies’ features and to control the potential endogeneity problem. Finally, the results are robust to various measures of EM and FBG’ proxies. Findings The findings of the study show that the same network auditor is reducing EM in FBG affiliates. In addition, the BIG4 same network auditors are also instrumental in constraining EM as compared to non-BIG4 audit firms. Overall, the results of this study depict that the same network auditor in FBG’s affiliated firms significantly influences EM. These results are robust with respect to generalized least squares and the endogeneity problem. Research limitations/implications This research study has two important implications for the interested parties. First, although the authors find in this research study that the same network auditor is negatively associated with EM in the FBG-affiliated firms, however, FBG-affiliated firms might use opportunistically the real activity manipulation. Second, regulators highlight the change in audit partner/firm rotation, though the study findings indicate that regulators and practitioners may consider the benefits associated with the same network auditors for FBG. Originality/value This research study adds a new investigation to previous literature by examining the role of the same network auditors in the EM of the FBG’ affiliates. To the best of the author’s knowledge, this is the first study to bring new knowledge by investigating the role played by the same network auditors along with the BIG4 same network audit firms in constraining EM in FBG.

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Corporate performance modeling through disclosure quality at the level of developing countries in Southeast Asia

Abu Afifa,

Nguyen

2024

Economic Research-Ekonomska Istraživanja

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Internal corporate governance mechanisms and earnings manipulation practices in MENA countries

Cited by 7 publications

References 98 publications

Earnings Management in Corporate Governance: A Systematic Literature Review

Earnings Management in Corporate Governance: A Systematic Literature Review

The same network auditor, family business groups and earnings manipulation: an evidence from emerging market

Corporate performance modeling through disclosure quality at the level of developing countries in Southeast Asia

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