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Contrasting Incentives for Earnings Management: Board Activity and Board Remuneration in Spanish Firms

Author

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  • McWay, Ryan

    (University of Michigan)

  • Saona, Paolo
  • Muro, Laura
  • Jara, Mauricio

Abstract

We analyze the effect board activity and board remuneration has on earnings management (EM). Our results show that more active boards are inefficient in preventing earnings manipulation. Regarding board compensation we find a U-shaped relation indicating that excessive remuneration will lead to more earnings management. Policy recommendations are derived from the findings.

Suggested Citation

  • McWay, Ryan & Saona, Paolo & Muro, Laura & Jara, Mauricio, 2019. "Contrasting Incentives for Earnings Management: Board Activity and Board Remuneration in Spanish Firms," OSF Preprints xgn3y, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:xgn3y
    DOI: 10.31219/osf.io/xgn3y
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    References listed on IDEAS

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    1. Mariano González-Sánchez & Eva M. Ibáñez Jiménez & Ana I. Segovia San Juan, 2021. "Board of Directors’ Remuneration, Employee Costs, and Layoffs: Evidence from Spain," Sustainability, MDPI, vol. 13(14), pages 1-10, July.

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