The impact of corporate governance on informative earnings management in China

UM > Faculty of Business Administration > DEPARTMENT OF ACCOUNTING AND INFORMATION MANAGEMENT

Status	已發表Published
	The impact of corporate governance on informative earnings management in China
	Noronha, C.; Liu, M.
	2012-10-01
Source Publication	Proceedings of the 24th Asian-Pacific Conference on International Accounting Issues
Publication Place	Hawaii
Publisher	APC
Abstract	This study investigates the relationship between corporate governance and informative earnings management for Chinese listed firms. While most previous studies on earnings management adopt the opportunistic perspective, we examine earnings management from an informative perspective, treating discretionary accruals as a means for managers to signal private information to external stakeholders regarding the firm’s future cash flow or potential earnings. We postulate that good corporate governance practices motivate firm managers to engage in informative earnings management. By developing a measurable proxy of informative earnings management, we test the association of managerial informative earnings management with internal corporate governance mechanisms. The regression results support our hypotheses, indicating that corporate governance has a positive impact on the possibility of managerial informative earnings management and better corporate governance should contribute to improving the transparency of financial reporting and the informativeness of reported earnings.
Keyword	Earnings management Informative earnings management Corporate governance Discretionary accruals Chinese accounting
URL	View the original
Language	英語English
The Source to Article	PB_Publication
PUB ID	9578
Document Type	Conference paper
Collection	DEPARTMENT OF ACCOUNTING AND INFORMATION MANAGEMENT
Recommended Citation GB/T 7714	Noronha, C.,Liu, M.. The impact of corporate governance on informative earnings management in China[C], Hawaii:APC, 2012.
APA	Noronha, C.., & Liu, M. (2012). The impact of corporate governance on informative earnings management in China. Proceedings of the 24th Asian-Pacific Conference on International Accounting Issues.

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