The Effects of Board Independence, Board Diversity and Corporate Social Responsibility on Earnings Management

24 Pages Posted: 18 Dec 2010 Last revised: 1 Dec 2014

See all articles by Nor Raihan Mohamad

Nor Raihan Mohamad

Universiti Malaysia Terengganu (UMT)

Shamsul Abdullah

Universiti Malaysia Terengganu (UMT)

Mohd Zulkifli Mokhtar

Universiti Malaysia Terengganu (UMT)

Nik Fuad Bin Kamil

Universiti Malaysia Terengganu (UMT)

Date Written: December 15, 2010

Abstract

This study extends earlier research on corporate governance by examining whether the interaction between independent directors, women directors, minority directors and corporate social responsibility practices is effective to mitigate earnings management. Using panel data from Malaysian firms for the financial years 2005-07, this study finds that only minority director has main effect on earnings management. This result suggests that firms which have board diversity tend to have lower earnings management. There is no interaction effect between corporate social responsibility and corporate governance variables on earnings management.

Keywords: earnings management, independent director, board diversity, corporate social responsibility, Malaysia

Suggested Citation

Mohamad, Nor Raihan and Abdullah, Shamsul and Zulkifli Mokhtar, Mohd and Kamil, Nik Fuad Bin, The Effects of Board Independence, Board Diversity and Corporate Social Responsibility on Earnings Management (December 15, 2010). Finance and Corporate Governance Conference 2011 Paper. Available at SSRN: https://ssrn.com/abstract=1725925 or http://dx.doi.org/10.2139/ssrn.1725925

Nor Raihan Mohamad (Contact Author)

Universiti Malaysia Terengganu (UMT) ( email )

Faculty of Management and Economics
Universiti Malaysia Terengganu
Kuala Terengganu, Terengganu 21030
Malaysia
6096683776 (Phone)

Shamsul Abdullah

Universiti Malaysia Terengganu (UMT) ( email )

Terengganu, Terengganu
Malaysia

Mohd Zulkifli Mokhtar

Universiti Malaysia Terengganu (UMT) ( email )

Terengganu, Terengganu
Malaysia

Nik Fuad Bin Kamil

Universiti Malaysia Terengganu (UMT) ( email )

Terengganu, Terengganu
Malaysia

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