The Impact Of Board Of Directors Characteristics On Earnings Management

Abstract

This study aimed to test the impact of the board of directors characteristics on the Earnings Management for a sample of 42 family shareholding companies in Algeria during the period 2010-2016, to achieve this objective, the study was based on the construction of Dynamic Panel Data Model, which included Earnings Management as a dependent variable, And size of the board of directors, management ownership, ownership of the executive director (Chairman of the board of directors) as independent variables, in addition to some other variables affecting that relationship, To estimate this model, the Generalized Method of Moments (GMM) was used.

The study found that there is a positive relationship between the size of the board of directors, the management ownership and Earnings Management in the family shareholding companies in Algeria, and the negative relationship between the ownership of the executive director (chairman of the board of directors) and Earnings Management in the family shareholding companies in Algeria.