The Effect of Corporate Governance on Earnings Management and Dividends

Simon, Febriyanti and Sheng-Te, Chou (2016) The Effect of Corporate Governance on Earnings Management and Dividends. In: UNSPECIFIED.

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Financial report is the most important report that must be prepared by companies that put their stock in the market (public companies). According to Financial Accounting Standard Boards (FASB), financial reporting should provide information that is useful to present and potential investors and creditors and other users in making rational investment and also for making decisions. In fact, there are differences between information that presented to the shareholders and information known by manager. Moreover, through the preparing process of financial report, there is different interest between manager and shareholders. Managers tend to do earnings management in order to meet their needs. This paper examines the effect of corporate governance that measured with managerial ownership, institutional ownership, board size and proportion of independent board on earnings management and dividends. Earnings management will measures with discretionary accrual with Modified Jones Model and dividends will measures with dividend payout ratio. The basic idea of this study just want to analyze that corporate governance is negatively associated on earnings management and earnings management is associated in dividend payout ratio. Good implementation of corporate governance can constrained the manager’s act to do earnings management.

Item Type: Conference or Workshop Item (Paper)
Subjects: 300 Social Sciences > 320 Political science > 321 Systems of governments and states
300 Social Sciences > 350 Public administration and military science > 353 Specific Public Administration (Incl. Social Welfare, Health Services; Safety, Mitigation, Waste Control; Public Justice, Corruption)
Divisions: Faculty of Business > Accounting
Depositing User: Administrator UMN Library
Date Deposited: 29 Aug 2020 04:53
Last Modified: 13 Jan 2022 05:01

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