The effect of multiple directorships on real and accrual-based earnings management - Archive ouverte HAL Accéder directement au contenu
Article Dans Une Revue Accounting Research Journal Année : 2017

The effect of multiple directorships on real and accrual-based earnings management

Kais Baatour
  • Fonction : Auteur
Hakim Ben Othman
Khaled Hussainey

Résumé

Purpose The study aims to examine the effect of multiple directorships on accrual-based earnings management and real earnings management. It analyses whether earnings management practices in the Saudi context increase or decrease with the average number of multiple directorships. Design/methodology/approach The study uses the approach by Roychowdhury (2006) to capture the level of real earnings management and uses the cross-sectional model by Jones (1991) to measure accrual-based earnings management. Findings The paper provides partial evidence supporting the “busyness” hypothesis where earnings management practices increase with the number of multiple directorships. The evidence shows that multiple directorships have a positive and significant effect on real earnings management in the Kingdom of Saudi Arabia. However, we find no significant impact of multiple directorships on accrual-based earnings management. Originality/value This is the first study that empirically investigates the relationship between multiple directorships and earnings management in the Kingdom of Saudi Arabia. The paper contributes to the limited literature on multiple directorships in developing countries by examining their impact on opportunistic real earnings management.

Dates et versions

hal-03665626 , version 1 (12-05-2022)

Identifiants

Citer

Kais Baatour, Hakim Ben Othman, Khaled Hussainey. The effect of multiple directorships on real and accrual-based earnings management. Accounting Research Journal , 2017, 30 (4), pp.395-412. ⟨10.1108/ARJ-06-2015-0081⟩. ⟨hal-03665626⟩
21 Consultations
0 Téléchargements

Altmetric

Partager

Gmail Facebook X LinkedIn More