Title: Corporate governance mechanisms and earnings management

Authors: Dimitris Balios; Petros Kalantonis; Theodora Zaroulea

Addresses: Department of Economics, National and Kapodistrian University of Athens, Greece; National and Kapodistrian University of Athens MBA, Sofokleous, 1, 10559, Athens, Greece ' Department of Tourism Management, University of West Attica, 28, Ag. Spyridonos Str., 12243 Egaleo, Greece; Hellenic Open University, Patra, Greece ' Department of Economics, National and Kapodistrian University of Athens, Sofokleous, 1, 10559, Athens, Greece

Abstract: This article aims to summarise a significant number of previous qualitative and quantitative researches in order for scholars to reconsider their understanding of corporate governance mechanisms. The fundamental purpose of examining corporate governance practices is to define the way earnings management can be reduced. The findings show unclear conclusions concerning the board of directors' and the committee's characteristics on earnings management. That is why adopting corporate governance mechanisms strives for reducing the 'agency' problem. Furthermore, researchers can monitor the impact of corporate governance mechanisms by focusing on recent literature (2019, 2020, 2021). Future research in this area is therefore being promoted. Implementing corporate governance in companies is a given, as it can ensure their effectiveness and increase their credibility and prestige. Adopting corporate governance practices mitigates earnings management phenomena, and companies make the right decisions for their smoother operation.

Keywords: corporate governance mechanisms; agency theory; board of directors; BoDs; audit committee; earnings management; rank journal.

DOI: 10.1504/JIBED.2022.126950

Journal for International Business and Entrepreneurship Development, 2022 Vol.14 No.3, pp.304 - 328

Received: 10 May 2022
Accepted: 11 May 2022
Published online: 14 Nov 2022 *

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