The impact of corporate governance on earnings management in Korea / Hyo Jin Kim and Soon Suk Yoon

The purpose of this study is to analyze whether an improvement in corporate governance can mitigate earnings management. Our study further investigates corporate governance factors that mitigate the earnings management practices. of 2004 and 2005. The degree of earnings management is measured by di...

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Main Authors:	Kim, Hyo Jin, Yoon, Soon Suk
Format:	Article
Language:	English
Published:	Accounting Research Institute (ARI) & Faculty of Accountancy 2008
Online Access:	http://ir.uitm.edu.my/id/eprint/194/ http://ir.uitm.edu.my/id/eprint/194/1/AJ_HYO%20JIN%20KIM%20MAR%2008.pdf

id	uitm-194
recordtype	eprints
spelling	uitm-1942017-06-22T08:47:51Z http://ir.uitm.edu.my/id/eprint/194/ The impact of corporate governance on earnings management in Korea / Hyo Jin Kim and Soon Suk Yoon Kim, Hyo Jin Yoon, Soon Suk The purpose of this study is to analyze whether an improvement in corporate governance can mitigate earnings management. Our study further investigates corporate governance factors that mitigate the earnings management practices. of 2004 and 2005. The degree of earnings management is measured by discretionary accruals and total accruals. We use mean difference tests and regression analyses to investigate the impact of corporate governance on earnings management. The main variables of interest in our study are the activities of outside directors in board meetings, the establishment of an audit committee, concentrated ownership and foreign ownership. We find that the independence of the board of directors, ownership concentration, foreign ownership, leverage ratio and firm size significantly affect discretionary accruals and total accruals. In sum, our results partially support the hypothesis that corporate governance and earnings management are significantly related. However, we find that the adoption of an audit committee does not significantly affect the degree of accruals. Accounting Research Institute (ARI) & Faculty of Accountancy 2008-07 Article PeerReviewed text en http://ir.uitm.edu.my/id/eprint/194/1/AJ_HYO%20JIN%20KIM%20MAR%2008.pdf Kim, Hyo Jin and Yoon, Soon Suk (2008) The impact of corporate governance on earnings management in Korea / Hyo Jin Kim and Soon Suk Yoon. Malaysian Accounting Review, 7 (1). pp. 43-59. ISSN 1675-4077
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
description	The purpose of this study is to analyze whether an improvement in corporate governance can mitigate earnings management. Our study further investigates corporate governance factors that mitigate the earnings management practices. of 2004 and 2005. The degree of earnings management is measured by discretionary accruals and total accruals. We use mean difference tests and regression analyses to investigate the impact of corporate governance on earnings management. The main variables of interest in our study are the activities of outside directors in board meetings, the establishment of an audit committee, concentrated ownership and foreign ownership. We find that the independence of the board of directors, ownership concentration, foreign ownership, leverage ratio and firm size significantly affect discretionary accruals and total accruals. In sum, our results partially support the hypothesis that corporate governance and earnings management are significantly related. However, we find that the adoption of an audit committee does not significantly affect the degree of accruals.
format	Article
author	Kim, Hyo Jin Yoon, Soon Suk
spellingShingle	Kim, Hyo Jin Yoon, Soon Suk The impact of corporate governance on earnings management in Korea / Hyo Jin Kim and Soon Suk Yoon
author_facet	Kim, Hyo Jin Yoon, Soon Suk
author_sort	Kim, Hyo Jin
title	The impact of corporate governance on earnings management in Korea / Hyo Jin Kim and Soon Suk Yoon
title_short	The impact of corporate governance on earnings management in Korea / Hyo Jin Kim and Soon Suk Yoon
title_full	The impact of corporate governance on earnings management in Korea / Hyo Jin Kim and Soon Suk Yoon
title_fullStr	The impact of corporate governance on earnings management in Korea / Hyo Jin Kim and Soon Suk Yoon
title_full_unstemmed	The impact of corporate governance on earnings management in Korea / Hyo Jin Kim and Soon Suk Yoon
title_sort	impact of corporate governance on earnings management in korea / hyo jin kim and soon suk yoon
publisher	Accounting Research Institute (ARI) & Faculty of Accountancy
publishDate	2008
url	http://ir.uitm.edu.my/id/eprint/194/ http://ir.uitm.edu.my/id/eprint/194/1/AJ_HYO%20JIN%20KIM%20MAR%2008.pdf
first_indexed	2023-09-18T22:44:13Z
last_indexed	2023-09-18T22:44:13Z
_version_	1777417116648996864

The impact of corporate governance on earnings management in Korea / Hyo Jin Kim and Soon Suk Yoon

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