IDEAS home Printed from https://ideas.repec.org/a/ids/ijcgov/v2y2010i1p31-41.html
   My bibliography  Save this article

Corporate governance and earnings management: going beyond agency theory and secondary data

Author

Listed:
  • David Alexander

Abstract

Earnings management has had a consequence in financial disasters such as Enron, WorldCom and Nortel – more recently, it is alleged in the Lehman bankruptcy, which ushered in a global financial meltdown. Yet despite increased regulation and focus on governance and auditing, researchers find that earnings management remains a common practice. Accounting academics have responded to the governance and earnings management issue by conducting studies using secondary data for governance variables and financial models that try to measure earnings management indirectly. Meanwhile, many best practice governance variables have become commonplace with little variability, and there is strong evidence that both the agency causal model and the earnings management measures are seriously flawed. This paper develops a mixed-mode research model based on agency theory and stewardship theory to explain earnings management, and suggests a more direct measure of its occurrence, namely the degree of board information asymmetry.

Suggested Citation

  • David Alexander, 2010. "Corporate governance and earnings management: going beyond agency theory and secondary data," International Journal of Corporate Governance, Inderscience Enterprises Ltd, vol. 2(1), pages 31-41.
    • Handle: RePEc:ids:ijcgov:v:2:y:2010:i:1:p:31-41
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=35233
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dinh Tran Ngoc Huy, 2013. "The Analysis of Limited Russian and North European Corporate Governance Standards after Global Crisis, Corporate Scandals and Market Manipulation," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 3(1), pages 1-9, February.
    2. Idris Mohammed & Siam Yousef Abu & Nassar Mahmoud, 2018. "Board independence, earnings management and the moderating effect of family ownership in Jordan," Management & Marketing, Sciendo, vol. 13(2), pages 985-994, June.
    3. Ghulam Abid & Binish Khan & Zeeshan Rafiq & Alia Ahmed, 2014. "Theoretical Perspectives of Corporate Governance," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 3(4), pages 166-175, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijcgov:v:2:y:2010:i:1:p:31-41. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=260 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.