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2020 | OriginalPaper | Buchkapitel

5. The Impact of Corporate Governance on Earnings Management of Portuguese Listed Firms

verfasst von : Inês Lisboa, Alexandra Costa

Erschienen in: Governance and Sustainability

Verlag: Springer Singapore

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Abstract

This work aims to analyze the impact of corporate governance characteristics on earnings management of Portuguese non-financial listed firms, for the period 2012–2016. Using panel data, we regress discretionary accruals, a proxy of earnings management, against corporate governance characteristics and control variables. The main results show that only two corporate governance variables: the independence of the board of directors and the type of corporate governance model adopted (one-tier or two-tier), and one control variable: level of indebtedness, are relevant to explain firm’s earnings management. Results show that discretionary accruals increase with the independence of the board of directors. Moreover, companies who adopt the two-tier model are less prone to increase accruals due to a greater separation of functions and supervision and an increase in the monitorization of opportunistic behaviors. Finally, this study provides evidence that a high level of indebtedness is a deterrent to earning management practices since creditors also monitor the company’s financial situation.

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Titel: The Impact of Corporate Governance on Earnings Management of Portuguese Listed Firms
verfasst von: Inês Lisboa
Alexandra Costa
Verlag: Springer Singapore
Buch: Governance and Sustainability
Print ISBN: 978-981-15-6369-0

Electronic ISBN: 978-981-15-6370-6

Copyright-Jahr: 2020
DOI: https://doi.org/10.1007/978-981-15-6370-6_5

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