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The Effect of the Board of Directors’ Structure on Earnings Management in Firms Accepted in Tehran Stock Exchange
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Saeid Mahmoudzadeh Baghbani   , Javad Pourghaffar Dastjerdi * |
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Abstract: (15520 Views) |
| The purpose of this paper is to examine the influence of the board of directors’ structure on earnings management for a panel of 480 observations from 2003 to 2010 in Firms Accepted in Tehran Stock Exchange. While the role of companies’ board of directors in earnings management has been examined in developed markets, particularly in USA and UK, understanding its effectiveness in emerging markets such as Iran is important due to differences of structure of business organizations across these markets. In this paper board size, board independence, and CEO-duality have been considered as the board of directors’ structure. Modified Jones Model (1995) has been used to determine the earnings management. Common effect model results indicate that the presence of positive relationship between CEO-duality and earnings management while we did not observe a statistically significant relationship between board size and board independence with earnings management. Furthermore, in this research, some control variables effects have been considered. |
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| Keywords: Earnings Management, Board Size, Board Independence, CEO- Duality |
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Full-Text [PDF 373 kb]
(6171 Downloads)
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Type of Study: Research |
Subject:
Special
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