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Title The impact of Firm characteristics and governance quality on earnings management

Author(s) Kashif

Abstract Title: The Impact of Firm Characteristics and Governance Quality on Earnings Management Earnings management has been a great and consistent concern among practitioners and regulators and has received considerable attention in the accounting literature. Several techniques and reasons exist for the practice of earnings management each is based on the management’s objectives. The purpose of this study is to investigate the impact of the firm’s characteristics and governance quality on earnings management of the firms listed on Pakistan stock exchange, (PSX). The population of the study consists of all firms that are listed on PSX. Furthermore, sample size of the study is 88 non-financial firms. The time period for data collection of the study is 10 years i.e. from 2007 to 2016. Furthermore, panel data technique is used in the study. Dependent variable of the study is earnings management. While the independent variables of the study are firm’s characteristics and governance quality. The results of random effect model estimated by GLS regression shows that there is significant positive relationship of financial leverage and governance quality with earnings management. While on the other hand, the study shows insignificant association of other independent variables with earnings management. The results of this study give an indication to the firms that are listed on PSX to control the level of financial leverage for the purpose to avoid the existence of earnings management practices. The results might also be guidance for the stakeholders of the firms to understand and focus specially on the level of the financial leverage of the firm before taking any investing decisions.

Type Thesis/Dissertation MS

Faculty Management Sciences

Department Management Sciences

Language English

Publication Date 2019-01-17

Subject Finance

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