The Effects of Corporate Governance Attributes on Real Earnings Management of Public Listed Companies in Bangladesh

  • Ronok Bishwas Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, MALAYSIA
  • Nor Hanani Rapani Faculty of Management and Economics, Universiti Pendidikan Sultan Idris, MALAYSIA
Keywords: Real Earnings Management (REM), Corporate Governance, Board Characteristics, Audit Committee Characteristics

Abstract

The act of real earnings management takes place in companies when investors' financial assurance is high and unrelenting corporate governance mechanisms are in place. The study examines the effects of corporate governance attributes on real earnings management. In this study, real earnings management has been measured through the using of three proxies’ abnormal discretionary expenses, abnormal production cost, and abnormal cash flow from operations. Board characteristics and audit committee characteristics have been examined as corporate governance attributes. The sample comprises of 244 listed companies in capital market in Bangladesh from 15 various industries for past 6 years from 2015-2020. Bank, financial institution, corporate bond, debenture, insurance, mutual fund and treasury bond companies are excluded. The study's findings will be significant for market participants and policymakers in ascertaining an effective corporate governance framework that can resolve the issue of real earnings management.

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Published
2022-06-10
How to Cite
Bishwas, R., & Rapani, N. H. (2022). The Effects of Corporate Governance Attributes on Real Earnings Management of Public Listed Companies in Bangladesh. International Business Education Journal, 15(1), 1-17. https://doi.org/10.37134/ibej.vol15.1.1.2022