Journal article 81 views
Non-Traditional Director Departure and Earning Management
SSRN Electronic Journal
Swansea University Author:
Anh Do
Full text not available from this repository: check for access using links below.
DOI (Published version): 10.2139/ssrn.4766517
Abstract
It is hypothesized that the practice of earnings management is systematically related to the strength of internal corporate governance mechanisms, including the board of directors, the audit committee, the internal audit function and the choice of the external auditor. However, the role of non-tradi...
Published in: | SSRN Electronic Journal |
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ISSN: | 1556-5068 |
Published: |
Elsevier BV
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Online Access: |
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URI: | https://cronfa.swan.ac.uk/Record/cronfa67505 |
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2024-09-30T16:48:46Z |
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2024-11-25T14:20:18Z |
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2024-09-30T17:49:30.2139150 v2 67505 2024-08-30 Non-Traditional Director Departure and Earning Management a1cf2469f07a784a37b1739eed708f6c 0000-0002-4537-0035 Anh Do Anh Do true false 2024-08-30 CBAE It is hypothesized that the practice of earnings management is systematically related to the strength of internal corporate governance mechanisms, including the board of directors, the audit committee, the internal audit function and the choice of the external auditor. However, the role of non-traditional directors has not yet been positioned in the determinants of earnings management literature. This study aims to fill in the gap of effects of corporate governance toward earning managements regarding the non-traditional director character. Using panel data on U.S public firms, we document a negative effect of non-traditional director departure on earning management. We establish causality of non-traditional director departure on earnings management and real earning management using difference-in-difference approach that exploits an exogenous shock to board composition, namely, the mandate of a majority of outside directors on company boards by NYSE and NASDAQ in response to the passage of Sarbanes-Oxley Act in 2002. Journal Article SSRN Electronic Journal Elsevier BV 1556-5068 0 0 0 0001-01-01 10.2139/ssrn.4766517 Preprint article before certification by peer review. COLLEGE NANME Management School COLLEGE CODE CBAE Swansea University 2024-09-30T17:49:30.2139150 2024-08-30T14:40:58.3389514 Faculty of Humanities and Social Sciences School of Management - Accounting and Finance Anh Do 0000-0002-4537-0035 1 Dimitrios Gounopoulos 2 David Newton 3 |
title |
Non-Traditional Director Departure and Earning Management |
spellingShingle |
Non-Traditional Director Departure and Earning Management Anh Do |
title_short |
Non-Traditional Director Departure and Earning Management |
title_full |
Non-Traditional Director Departure and Earning Management |
title_fullStr |
Non-Traditional Director Departure and Earning Management |
title_full_unstemmed |
Non-Traditional Director Departure and Earning Management |
title_sort |
Non-Traditional Director Departure and Earning Management |
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a1cf2469f07a784a37b1739eed708f6c |
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a1cf2469f07a784a37b1739eed708f6c_***_Anh Do |
author |
Anh Do |
author2 |
Anh Do Dimitrios Gounopoulos David Newton |
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Journal article |
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SSRN Electronic Journal |
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Swansea University |
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1556-5068 |
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10.2139/ssrn.4766517 |
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Elsevier BV |
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Faculty of Humanities and Social Sciences |
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Faculty of Humanities and Social Sciences |
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facultyofhumanitiesandsocialsciences |
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Faculty of Humanities and Social Sciences |
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School of Management - Accounting and Finance{{{_:::_}}}Faculty of Humanities and Social Sciences{{{_:::_}}}School of Management - Accounting and Finance |
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description |
It is hypothesized that the practice of earnings management is systematically related to the strength of internal corporate governance mechanisms, including the board of directors, the audit committee, the internal audit function and the choice of the external auditor. However, the role of non-traditional directors has not yet been positioned in the determinants of earnings management literature. This study aims to fill in the gap of effects of corporate governance toward earning managements regarding the non-traditional director character. Using panel data on U.S public firms, we document a negative effect of non-traditional director departure on earning management. We establish causality of non-traditional director departure on earnings management and real earning management using difference-in-difference approach that exploits an exogenous shock to board composition, namely, the mandate of a majority of outside directors on company boards by NYSE and NASDAQ in response to the passage of Sarbanes-Oxley Act in 2002. |
published_date |
0001-01-01T08:33:28Z |
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11.049513 |