Type of earnings management against managerial entrenchment and corporate governance mechanisms
by Jamel Chouaibi; Najet Ben Ibrahim
International Journal of Behavioural Accounting and Finance (IJBAF), Vol. 5, No. 2, 2015

Abstract: The purpose of this research is to determine the type of earnings management in Canadian firms. To do this, we studied the effect of discretionary accruals, proxy of earnings management, on the future profitability of the firm. In addition, we studied the effect of entrenchment and governance mechanisms namely the board independence, the audit committee existence and the audit quality on the type of earnings management. Our study was based on a sample of 113 Canadian firms listed on the Toronto stock exchange. Using multiple regressions, we found that the type of earnings management chosen by Canadian firms result tends towards efficiency, and that the effect of discretionary accruals on future profitability is moderated only by the manager's entrenchment and the audit quality.

Online publication date: Mon, 12-Oct-2015

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Behavioural Accounting and Finance (IJBAF):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com