Corporate governance and earnings management : evidence from Singapore.

• Main Authors: Chan, Farrell., Ong, Benjamin Zhi Hua., Wong, Jude Mixaiah Yiliang.
• Other Authors: Angie Low An Chee
• Format: Final Year Project
• Language: English
• Published: 2013
• Subjects: DRNTU::Business::Finance::Corporate governance
• Online Access: http://hdl.handle.net/10356/51395
• Institution: Nanyang Technological University

This study examines the association between the levels of corporate governance in a company and its degree of earnings management in Singapore. We further develop the study by considering firms that have substantial investments from the government and its effect on the existing association between our two constructs. We use a sample of 68 firms over a four-year period from 2003 to 2006. To determine the level of corporate governance of our sample firms, we develop a method that to an extent accounts for the nuances that are specific to the regulatory and political environment in Singapore. We find that better governance is associated with less earnings management but this relation is attenuated among government-linked firms.