The effect of selected corporate governance, external audit and audit committee factors on constraining earnings management practice among publicly listed companies in the Philippines

• Main Authors: Madamba, Frances Anne Margaret, Mesina, Sheena Marie I., Raymundo, Ana Maria Luise S., Sacatin, Justin Joy A.
• Format: text
• Language: English
• Published: Animo Repository 2014
• Subjects: Corporate governance > Philippines; Audit committees > Philippines; Accounting
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/10532
• Institution: De La Salle University

The study explored and described the selected corporate governance, external audit and audit committee factors involved in constraining earnings management. The goals of the study were 1) to determine how the board of directors and ownership structure of a company affects the level of earnings management, 2) to determine the effect of an external audit in checking the earnings management practiced, 3) to identify the effect of audit committee on the level of earnings management, 4) to further establish the relationship of the composition of the Board of Directors in reviewing earnings management. Earnings management, being a growing concern for external users of financial statements has motivated the researchers to undertake this study. The research used quantitative approach to develop causal explanations. Data were collected through the use of annual reports (Form 17-A), corporate governance reports and audit committee charters. To further enhance this study, it used the multivariate regression to test if these factors have an effect on the earnings management. This analysis allowed the discovery of the effect of the selected corporate governance, external audit and audit committee to constraining earnings management. The study concluded that selected corporate governance, external audit and audit committee factors, multivariately significantly affect the earnings management. However, univariately it showed that not all variables significantly affect earnings management.