The effect of board characteristics, managerial ownership and top executives characteristics on mitigating earnings management of Philippine publicly listed companies

Earnings management has been one of the most widely discussed phenomena. During 2016, two of the biggest Philippine accounting scandals were discovered which involved two of the well-known publicly listed companies in the Philippines namely 2Go and Metrobank. The study focused on discretionary accru...

Full description

Saved in:
Bibliographic Details
Main Author: Gonzales, Cora Marie R.
Format: text
Language:English
Published: Animo Repository 2018
Subjects:
Online Access:https://animorepository.dlsu.edu.ph/etd_masteral/5510
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: De La Salle University
Language: English
id oai:animorepository.dlsu.edu.ph:etd_masteral-12348
record_format eprints
spelling oai:animorepository.dlsu.edu.ph:etd_masteral-123482024-12-16T06:03:27Z The effect of board characteristics, managerial ownership and top executives characteristics on mitigating earnings management of Philippine publicly listed companies Gonzales, Cora Marie R. Earnings management has been one of the most widely discussed phenomena. During 2016, two of the biggest Philippine accounting scandals were discovered which involved two of the well-known publicly listed companies in the Philippines namely 2Go and Metrobank. The study focused on discretionary accruals to represent earnings management and regressed it with 17 regressors which were mainly divided into two, the control variables and the dependent variable which is divided into three sections namely the board characteristics, managerial ownership and top executives demographic characteristics. The study used the cross sectional modified jones model to obtain the discretionary accruals. Ordinary least square regression was used to assess the influence of the independent variable discretionary accruals with the dependent variables and the control variables. Overall, the study showed that for the independent variables used in this study all does not significantly influence earnings management. Corporate governance characteristics does not influence earnings management. The study proposed three plausible explanation for this result. First is BOD are seen as ineffective in discharging their monitoring duties due to management dominance over board matters. Second is that the board is ineffective due to qualitative factors of the board members like expertise and allotted time in performing their duties. Lastly, due to the challenges in implementation of corporate governance in the Philippines. Managerial ownership does not significantly influence earnings management. A plausible explanation is the risk effect in which earnings management is a risky activity and posits that risk-adverse managers will be less likely to engage in risky activities as their ownership increases. Another is the difference in characteristics of ownership structure in developing countries such as experience, knowledge, efficiency of market and investor protection. Top executives demographic characteristics do not significantly influence earnings management. A plausible explanation for the insignificant effect of demographics on earnings management is that there other traits like ethics, values, skills and competence that affect decision making. Moreover, observable demographic factors simply do not provide a reliable portrayal of a persons makeup. People are more complex than that and must be studied in a more clinical manner. 2018-01-01T08:00:00Z text https://animorepository.dlsu.edu.ph/etd_masteral/5510 Master's Theses English Animo Repository Earnings management Industrial management
institution De La Salle University
building De La Salle University Library
continent Asia
country Philippines
Philippines
content_provider De La Salle University Library
collection DLSU Institutional Repository
language English
topic Earnings management
Industrial management
spellingShingle Earnings management
Industrial management
Gonzales, Cora Marie R.
The effect of board characteristics, managerial ownership and top executives characteristics on mitigating earnings management of Philippine publicly listed companies
description Earnings management has been one of the most widely discussed phenomena. During 2016, two of the biggest Philippine accounting scandals were discovered which involved two of the well-known publicly listed companies in the Philippines namely 2Go and Metrobank. The study focused on discretionary accruals to represent earnings management and regressed it with 17 regressors which were mainly divided into two, the control variables and the dependent variable which is divided into three sections namely the board characteristics, managerial ownership and top executives demographic characteristics. The study used the cross sectional modified jones model to obtain the discretionary accruals. Ordinary least square regression was used to assess the influence of the independent variable discretionary accruals with the dependent variables and the control variables. Overall, the study showed that for the independent variables used in this study all does not significantly influence earnings management. Corporate governance characteristics does not influence earnings management. The study proposed three plausible explanation for this result. First is BOD are seen as ineffective in discharging their monitoring duties due to management dominance over board matters. Second is that the board is ineffective due to qualitative factors of the board members like expertise and allotted time in performing their duties. Lastly, due to the challenges in implementation of corporate governance in the Philippines. Managerial ownership does not significantly influence earnings management. A plausible explanation is the risk effect in which earnings management is a risky activity and posits that risk-adverse managers will be less likely to engage in risky activities as their ownership increases. Another is the difference in characteristics of ownership structure in developing countries such as experience, knowledge, efficiency of market and investor protection. Top executives demographic characteristics do not significantly influence earnings management. A plausible explanation for the insignificant effect of demographics on earnings management is that there other traits like ethics, values, skills and competence that affect decision making. Moreover, observable demographic factors simply do not provide a reliable portrayal of a persons makeup. People are more complex than that and must be studied in a more clinical manner.
format text
author Gonzales, Cora Marie R.
author_facet Gonzales, Cora Marie R.
author_sort Gonzales, Cora Marie R.
title The effect of board characteristics, managerial ownership and top executives characteristics on mitigating earnings management of Philippine publicly listed companies
title_short The effect of board characteristics, managerial ownership and top executives characteristics on mitigating earnings management of Philippine publicly listed companies
title_full The effect of board characteristics, managerial ownership and top executives characteristics on mitigating earnings management of Philippine publicly listed companies
title_fullStr The effect of board characteristics, managerial ownership and top executives characteristics on mitigating earnings management of Philippine publicly listed companies
title_full_unstemmed The effect of board characteristics, managerial ownership and top executives characteristics on mitigating earnings management of Philippine publicly listed companies
title_sort effect of board characteristics, managerial ownership and top executives characteristics on mitigating earnings management of philippine publicly listed companies
publisher Animo Repository
publishDate 2018
url https://animorepository.dlsu.edu.ph/etd_masteral/5510
_version_ 1819113593225871360