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RELATIONSHIP BETWEEN EARNING MULTIPLES CORPORATE GOVERNANCE AND EARNINGS MANAGEMENT PRACTICES AN EMPIRICAL VIEW WITH A MEDIATION ANALYSIS

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50 Pages : 387-395

http://dx.doi.org/10.31703/gssr.2019(IV-I).50      10.31703/gssr.2019(IV-I).50      Published : Mar 1

Relationship between Earning Multiples, Corporate Governance and Earnings Management Practices: An Empirical View with a Mediation Analysis

Abstract

    This paper investigated the effect of corporate governance in improving the earnings multiple and reducing the discretionary accruals. This study developed four econometrics models. Random effect model employed for examining the first three econometric models, while for the fourth econometric model study used Andrew F. Hayes mediation process. Results suggest that BOD size, BOD meetings and audit committee size has a significant positive impact on earnings multiples, while earnings multiples have a negative impact on dictionary accrual. Moreover, BOD size and audit committee size has a significant negative impact on dictionary accrual, whereas BOD meetings and employee ownership has a significant positive impact on dictionary accrual. The results further revealed the novel link that earnings multiples partially mediate the relationship between corporate governance variables and dictionary accrual. The new findings provide important insights for all the stakeholders like government, practitioners, academia, researchers, banks, Bursa Malaysia, security commission and public listed companies.

    Corporate Governance Variables, Earnings Multiples (Firm's Financial Performance), Discretionary Accruals (Earnings Management), Mediation

    (1) Syeda Faiza Urooj
    Assistant Professor, Department of Commerce, Federal Urdu University of Arts Science & Technology, Islamabad, Pakistan.
    (2) Muhammad Anees Khan
    Assistant Professor, Department of Management Studies, Bahria University Islamabad Campus, Pakistan.
    (3) Muzammal Ilyas Sindhu
    Lecturer, Department of commerce, Federal Urdu University of Science and Technology, Islamabad, Pakistan
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Cite this article

APA

    APA : Urooj, S. F., Khan, M. A., & Sindhu, M. I. (2019). Relationship between Earning Multiples, Corporate Governance and Earnings Management Practices: An Empirical View with a Mediation Analysis. Global Social Sciences Review, IV(I), 387-395. https://doi.org/10.31703/gssr.2019(IV-I).50

CHICAGO

    CHICAGO : Urooj, Syeda Faiza, Muhammad Anees Khan, and Muzammal Ilyas Sindhu. 2019. "Relationship between Earning Multiples, Corporate Governance and Earnings Management Practices: An Empirical View with a Mediation Analysis." Global Social Sciences Review, IV (I): 387-395 doi: 10.31703/gssr.2019(IV-I).50

HARVARD

    HARVARD : UROOJ, S. F., KHAN, M. A. & SINDHU, M. I. 2019. Relationship between Earning Multiples, Corporate Governance and Earnings Management Practices: An Empirical View with a Mediation Analysis. Global Social Sciences Review, IV, 387-395.

MHRA

    MHRA : Urooj, Syeda Faiza, Muhammad Anees Khan, and Muzammal Ilyas Sindhu. 2019. "Relationship between Earning Multiples, Corporate Governance and Earnings Management Practices: An Empirical View with a Mediation Analysis." Global Social Sciences Review, IV: 387-395

MLA

    MLA : Urooj, Syeda Faiza, Muhammad Anees Khan, and Muzammal Ilyas Sindhu. "Relationship between Earning Multiples, Corporate Governance and Earnings Management Practices: An Empirical View with a Mediation Analysis." Global Social Sciences Review, IV.I (2019): 387-395 Print.

OXFORD

    OXFORD : Urooj, Syeda Faiza, Khan, Muhammad Anees, and Sindhu, Muzammal Ilyas (2019), "Relationship between Earning Multiples, Corporate Governance and Earnings Management Practices: An Empirical View with a Mediation Analysis", Global Social Sciences Review, IV (I), 387-395

TURABIAN

    TURABIAN : Urooj, Syeda Faiza, Muhammad Anees Khan, and Muzammal Ilyas Sindhu. "Relationship between Earning Multiples, Corporate Governance and Earnings Management Practices: An Empirical View with a Mediation Analysis." Global Social Sciences Review IV, no. I (2019): 387-395. https://doi.org/10.31703/gssr.2019(IV-I).50