Abstract:
This study has focused mainly on identifying the impact of corporate governance on accruals earning management in Pakistan. This study has considered managerial ownership structure, institutional ownership, board structure, non-executive directors, CEO duality and organizational committee as independent variables. Whereas, accruals earning management has been considered as the dependent variable in this study. However, this study has finalized financial firms of Pakistan to testify the relationship between variables mentioned above. The major emphasis in this study has been on assessing the relationship between managerial ownership structure, institutional ownership, board structure, non-executive directors, CEO duality and organizational committee (independent variables) and accruals earning management (dependent variable) in financial firms of Pakistan. Secondary sources of data (annual financial statements) have been used for data collection regarding variables of this study from the period of 2014 – 2019. A sample size of 1350 observations has been finalized to represent the entire population. Collected data has then been analyzed through statistical instruments such as correlation and regression by using Strata. Based on the findings, it has been concluded that managerial ownership structure, institutional ownership, board structure, non-executive directors, CEO duality and organizational committee has significant impact on accruals earning management in financial firms in Pakistan.
