The impact of corporate governance on earnings management in Korea / Hyo Jin Kim and Soon Suk Yoon

Kim, Hyo Jin and Yoon, Soon Suk (2008) The impact of corporate governance on earnings management in Korea / Hyo Jin Kim and Soon Suk Yoon. Malaysian Accounting Review, 7 (1). pp. 43-59. ISSN 1675-4077

Official URL: https://mar.uitm.edu.my/

Abstract

The purpose of this study is to analyze whether an improvement in corporate governance can mitigate earnings management. Our study further investigates corporate governance factors that mitigate the earnings management practices. of 2004 and 2005. The degree of earnings management is measured by
discretionary accruals and total accruals. We use mean difference tests and
regression analyses to investigate the impact of corporate governance on
earnings management. The main variables of interest in our study are the
activities of outside directors in board meetings, the establishment of an audit
committee, concentrated ownership and foreign ownership.
We find that the independence of the board of directors, ownership
concentration, foreign ownership, leverage ratio and firm size significantly
affect discretionary accruals and total accruals. In sum, our results partially
support the hypothesis that corporate governance and earnings management
are significantly related. However, we find that the adoption of an audit
committee does not significantly affect the degree of accruals.

Metadata

Item Type: Article
Creators:
Creators
Email / ID Num.
Kim, Hyo Jin
UNSPECIFIED
Yoon, Soon Suk
UNSPECIFIED
Divisions: Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI)
Journal or Publication Title: Malaysian Accounting Review
UiTM Journal Collections: UiTM Journal > Management & Accounting Review (MAR)
ISSN: 1675-4077
Volume: 7
Number: 1
Page Range: pp. 43-59
Keywords: Corporate governance, Earnings management, Audit committee, Board independence
Date: July 2008
URI: https://ir.uitm.edu.my/id/eprint/194
Edit Item
Edit Item

Download

[thumbnail of AJ_HYO JIN KIM MAR 08.pdf] Text
AJ_HYO JIN KIM MAR 08.pdf

Download (0B)

ID Number

194

Indexing

|

Statistic

Statistic details