Title: Impact of corporate governance on firm value in the presence of earning quality and real earnings management

Authors: Ahmed Shahzad; Mian Sajid Nazir; Muhammad Ali Jibran Qamar; Ammar Abid

Addresses: Department of Management Sciences, COMSATS University Islamabad, Lahore Campus, Lahore, Pakistan; The Institute of Management Sciences (Pak-AIMS), Gulberg, Lahore, Pakistan ' Department of Management Sciences COMSATS University Islamabad, Lahore Campus, Lahore, Pakistan ' Department of Management Sciences COMSATS University Islamabad, Lahore Campus, Lahore, Pakistan ' Department of Management Sciences COMSATS University Islamabad, Lahore Campus, Lahore, Pakistan

Abstract: The objective of this study is to investigate how strong corporate governance impact is on firm value in the presence of earning quality and real earning management for public limited firms in Pakistan. Findings of this research are consistent with all hypotheses expounded, significantly mediated, earning quality and moderate, the real earning management between the relationship of corporate governance and a firm value. Firms, who have a strong corporate governance structure, enhance the earning quality and firm value, and control real earning management. The study provides policy implications that strong corporate governance practices are value-oriented for firms, and the government should provide more resources to improve corporate governance practices. Moreover, regulators must ensure that public listed companies disclose the truthful information about financials and corporate governance reports to provide the benefits to the user of financial statements, which ultimately enhance the firm value.

Keywords: real earnings management; firm value; corporate governance regimes; endogenous switching regression model.

DOI: 10.1504/IJBEX.2023.129103

International Journal of Business Excellence, 2023 Vol.29 No.3, pp.409 - 436

Received: 26 May 2020
Accepted: 03 Jul 2020
Published online: 20 Feb 2023 *

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