The impact of audit quality, corporate governance, and company characteristics on earnings management

Volume 11, Issue 1, Article 8 - 2021

Authors: Yousef Shahwan

Copyright © 2021 . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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Abstract

This study aims to investigate empirically how the characteristics of the firm; the audit quality and the corporate governance impact the management of earnings. The population employed in this study is industrial firms listed on the Amman Stock Exchange between 2017 and 2019. The method of sampling employed in this study is purposive sampling. 39 firms are analyzed, with 117 items of data being achieved. Also, this study applies statistical testing via multiple regression. The findings show that sales growth, free cash flow, financial leverage, and return on assets all have an impact on earnings management. Meanwhile, other factors such as audit quality, firm size, audit committee, the board size, institutional ownership, and managerial ownership, have not to impact on earnings management.

How To Cite This Article

Shahwan, Yousef (2021). The impact of audit quality, corporate governance, and company characteristics on earnings management. Global Journal of Economics and Business, 11(1): 107-112
https://doi.org/10.31559/GJEB2021.11.1.8