RT Journal Article
T1 Does the board of directors play a role in mitigating real and accrual-based earnings management in the MENA context?
A1 Almarayeh, Taha
A1 Aibar Guzmán, Beatriz
A1 Suárez Fernández, Óscar
K1 Earnings management
K1 Discretionary accruals
K1 Board of directors
K1 Corporate governance
K1 MENA countries
AB Purpose: In light of the key role attributed to the board of directors as a monitoring tool to constrain earnings management practices, this study aims to examine the effect of some board attributes on accrual-based earnings management and real earnings management in the Middle Eastern and North African (MENA) context, whose institutional, economic and legal environment is markedly different from that of most organization for economic cooperation and development countries. Design/methodology/approach: The authors selected a sample of 161 nonfinancial companies from nine MENA countries between 2014 and 2021 (corresponding to an unbalanced data panel of 486 observations). The authors used the generalized least squares regression test to examine the relationship between board attributes and earnings management. Findings: The authors found that three board attributes (size, independence and gender diversity) have no effect on both types of earnings management practices, while CEO duality has no effect on accrual-based earnings management but has a significant and negative effect on real earnings management. Overall, the results suggest that most board attributes do not play a crucial role in reducing earnings management. Research limitations/implications: The results provide valuable insights into the universal role of corporate governance mechanisms and raise questions about the role of the board of directors in improving reporting quality in the MENA context. Practical implications: Regulators should adapt corporate governance mechanisms to the characteristics of the institutional context in which they are inserted. Originality/value: To the best of the authors’ knowledge, this study is the first to examine the effect of various board characteristics on both types of earnings management practices in the MENA context. It also provides the first empirical evidence of the relationship between board gender diversity and earnings management in the MENA region.
PB Emerald
SN 1472-0701
YR 2024
FD 2024
LK https://hdl.handle.net/10347/44521
UL https://hdl.handle.net/10347/44521
LA eng
NO Almarayeh T, Aibar-Guzman B, Suárez-Fernández Ó (2024), "Does the board of directors play a role in mitigating real and accrual-based earnings management in the MENA context?". Corporate Governance, Vol. 24 No. 5 pp. 1103–1136, doi: https://doi.org/10.1108/CG-04-2022-0192
NO This is the manuscript of an article that has been accepted for publication
DS Minerva
RD 29 abr 2026