Board Independence, Audit Quality and Earnings Management: Evidence from Egypt
Publication date
2016Peer-Reviewed
YesOpen Access status
closedAccess
Metadata
Show full item recordAbstract
Using a unique dataset for Egyptian firms, we investigate the relationship between board independence, audit quality and earnings management. We test whether firm-level corporate governance provisions matter in an emerging market setting characterised by weak legal enforcement and inadequate external discipline by the market for corporate control. Our results cast doubt on the notion that a higher ratio of nonexecutive members is associated with lower earnings management. We find that the effect of board independence on earnings management practices is contingent on the levels of ownership held by executive directors and large shareholders, as well as the composition of audit committee. In addition, the results are consistent with the view that high-quality auditors are effective in reducing earnings management.Version
No full-text in the repositoryCitation
Khalil M and Ozkan A (2016) Board Independence, Audit Quality and Earnings Management: Evidence from Egypt. Journal of Emerging Market Finance. 15(1): 84-118.Link to Version of Record
https://doi.org/10.1177/0972652715623701Type
Articleae974a485f413a2113503eed53cd6c53
https://doi.org/10.1177/0972652715623701