The Effects of Corporate Governance Components on Accruals Based Earnings Management: The Importance of Independent and Female Members
Corporate governance has important role to constrain earnings management practices. In this paper, it investigated the constraining effect of corporate governance components which measured with some qualitative characteristics on the accruals based earnings management using 922 firm-year observations (second model 904 firm-year observations) in Borsa Istanbul National All Index between 2008 and 2013, using the panel data analysis. The results reveal that the percentage of the independent board members, the percentage of the independent audit committee members and the percentage of the female members on board are negatively associated with accruals based earnings management at significant levels. Further, the presence of independent and female members on board and audit committee are negatively associated with accruals based earnings management with significant levels.