Corporate governance and earnings management : An Australian perspective

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

7 Scopus Citations
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Detail(s)

Original languageEnglish
Pages (from-to)95-113
Journal / PublicationCorporate Ownership and Control
Volume10
Issue number3 A
Publication statusPublished - 2013

Abstract

This study examines the extent to which the first-time adoption of the Australian Stock Exchange (ASX) Corporate Governance Council?s corporate governance principles and recommendations was associated with lower levels of earnings management. Cross-sectional results indicate that the existence of an audit committee was associated with lower levels of earnings management in pre-, but not post-, recommendations. Lower director ownership was associated with higher levels of earnings management pre-, but not post-, recommendations. On the other hand, the existence of a remuneration committee was associated with lower levels of earnings management pre- and post-recommendations. In addition, longitudinal analysis shows that, following the first-time adoption, the only governance mechanism associated with reductions in earnings management was the establishment of a remuneration committee.

Research Area(s)

  • Corporate governance, Earnings management, Stock exchange

Citation Format(s)

Corporate governance and earnings management : An Australian perspective. / Kang, Helen; Leung, Sidney; Morris, Richard D.; Gray, Sidney J.

In: Corporate Ownership and Control, Vol. 10, No. 3 A, 2013, p. 95-113.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review