Impact of Earning Management on Share Holder Value Moderating Impact of Corporate Governance

Abstract

This study examines the "Impact of earnings management on shareholders' value" and the moderating role of corporate governance. Through a careful analysis, the study seeks to shed light on the intricate relationships between profits management and corporate governance strategies and how these relationships affect shareholder value. The findings provide important insights for businesses and decision-makers who want to increase the transparency and accountability of financial management. Date use in this is from 2018-2022. Our study investigates the impact of corporate governance index as measured by board size of firm (BS), board independency (BI), CEO duality (CD), concentrated ownership (OW), and institutional ownership (IO). This corporate governance index tells the strong or weak moderating impact between accrual earning management and shareholders wealth. Our empirical results tell us that accrual earning management have negative impact on shareholder values also the results tell us about the importance of corporate governance practices as if there are strong corporate governance practices it will have a positive impact on shareholder value also strong C.G practices will have negative impact on accrual earning management and vice versa. Corporate governance is crucial to organizations because it establishes the rules, processes, and guidelines that guide decisions and ensure responsibility. By encouraging transparency, defending shareholder interests, and effectively managing risks, corporate governance enhances performance, builds stakeholder trust, and facilitates the accessibility of capital. It also helps companies manage regulatory requirements, uphold ethical standards, and safeguard their brand in the marketplace. In the end, strong corporate governance practices support the long-term health and profitability of organizations in the complex business environment of today.