Corporate governance mechanisms and earnings management. (4th November 2022)

• Record Type: Journal Article
• Authors: Balios, Dimitris; Kalantonis, Petros; Zaroulea, Theodora
• Is Part Of: Journal of international business and entrepreneurship development. Volume 14:Number 3(2023)
• Page Start: 304
• Page End: 328
• Publication Date: 2022-11-04
• Subjects: corporate governance mechanisms -- agency theory -- board of directors -- BoDs -- audit committee -- earnings management -- rank journal; Entrepreneurship -- Periodicals; International business enterprises -- Periodicals; 338.8805
• Languages: English
• ISSNs: 1549-9324

Abstract

This article aims to summarise a significant number of previous qualitative and quantitative researches in order for scholars to reconsider their understanding of corporate governance mechanisms. The fundamental purpose of examining corporate governance practices is to define the way earnings management can be reduced. The findings show unclear conclusions concerning the board of directors' and the committee's characteristics on earnings management. That is why adopting corporate governance mechanisms strives for reducing the 'agency' problem. Furthermore, researchers can monitor the impact of corporate governance mechanisms by focusing on recent literature (2019, 2020, 2021). Future research in this area is therefore being promoted. Implementing corporate governance in companies is a given, as it can ensure their effectiveness and increase their credibility and prestige. Adopting corporate governance practices mitigates earnings management phenomena, and companies make the right decisions for their smoother operation.