Is Earnings Management Influenced by Board of Directors Attributes? A Case of Pakistan

Abstract

This study examines the influence of board of director’s attributes (board size, board independence, CEO duality, female directors and board meetings) on earnings management. A sample of 28 listed sugar firms have been investigated to analyze the association over a period of 2013 to 2018. Earnings management has been quantified by discretionary accruals. Discretionary accruals have been measured by Modified Jones Model. Panel regression analysis (Fixed Effect Model) is used to examine the relation ship. Findings indicate negative and significant association between board independ ence, female directorship and earnings management whereas negative insignificant rela tionship between board size and level of earnings management. Findings also indicate that CEO duality and board meetings are positively and significantly associated with earnings management.