Abstract:
This research study has examined the effect of corporate governance on the practice of earnings management of the two leading sectors of Pakistan. Focus is on the aspects of corporate governance grouped into three main categories; the board composition, the effectiveness of audit committee and ownership structure. For each category a few attributes have been identified by the literature, which are investigated in this research study. For this purpose, data set of seventy four (74) companies, representing textile and sugar sectors, listed on KSE for the period 2005 to 2011 has been employed. Sugar and textile sectors are the largest sectors of Pakistan Economy. Therefore, the study will contribute both in academic and policy perspectives.
