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Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport
ISSN (Print): 2376-1326 ISSN (Online): 2376-1334 Website: https://www.sciepub.com/journal/jbe Editor-in-chief: Pr. Abdelfatteh Bouri
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Issue 1, Volume 11
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Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2023, 11(1), 8-18
DOI: 10.12691/jbe-11-1-2
Open AccessReview Article

Corporate Governance, CEOs' Financial Incentives and Earnings Management? A Survey

Amal Ghareeb Alharbi1,

1Department of Accounting, College of Business and Economics, Qassim University, P.O.Box: 6640, Buraidah, 51452, Saudi Arabia

Pub. Date: June 01, 2023
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Cite this paper:
Amal Ghareeb Alharbi. Corporate Governance, CEOs' Financial Incentives and Earnings Management? A Survey. Journal of Behavioural Economics, Finance, Entrepreneurship, Accounting and Transport. 2023; 11(1):8-18. doi: 10.12691/jbe-11-1-2

Abstract

The study aims to review the impact of corporate governance and CEOs' financial incentives on earnings management. Some corporate departments resort to earnings management practices through measurement and accounting disclosure processes in a way that serves their interests, taking advantage of the flexibility in accounting standards to choose between alternative accounting methods and policies. An in-depth discussion of earning management measures was conducted and we concentrate on the Miller ratio, which focuses on working capital and operating cash flows. The study predicts a positive relationship between the board of directors' independence and earnings management and a positive relationship between leverage and earnings management.

Keywords:
board of directors financial incentives for executives earnings management

Creative CommonsThis work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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