The Association Between Board Composition and Earnings Management

Document Type : Research Paper

Author

Instructor Department of Accounting Payame Noor University

Abstract

A board of directors is a body of elected or appointed members who jointly oversee the activities of an organization. In this study, the association between board composition and earnings management is examined. Earnings management, in accounting Literature, is the act of intentionally influencing the process of financial reporting to obtain some private gain. In this article, the information of 80 companies listed in Tehran Stock Exchange for the period 1386 to 1391 were studied. Board composition has been measured by board size, board independence, and CEO-duality. Modified Jones Model has been used to determine the earnings management. Correlation matrix and Common effect model findings indicate the presence of positive relationship between CEO-duality and earnings management while we did not get statistically significant relationship between board size and board independence with earnings management.

Keywords


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