Corporate Governance and Earning Management: An Investigation on Turkish Capital Market

Corporate Governance and Earning Management: An Investigation on Turkish Capital Market

AYGÜN, Mehmet
İÇ, Süleyman
ARVAS, M. Akif

The main purpose of this paper is to examine the relationship between corporate governance and earning management. The data set covers 107 firms‘data listed on Istanbul Stock Exchange for the period 2006–2007. In the study, accrual is used as an earning management indicator. Publicly offering rate, board of directors and duality are used alternative proxies for corporate governance indicators. Regression and correlation analysis are used. According to the results, there is a negative relationship between earning management and corporate governance indicators. This negative relationship is statistically significant for duality variables. An important finding from the study is that corporate management has extensively been adopted accordingly in large firms and in firms with low leverage rate.

Conference or Workshop Item
PeerReviewed

2010-06

134