Vol. 19, N°1 (2024)

138

89

The moderating role of corporate governance mechanisms in the relationship between IFRS and Real Earning Management: Evidence from KSA and UAE

Résumé

This paper studies the moderating role of corporate governance mechanisms in the relationship between IFRS and Real Earning Management. The study employs 97 companies listed in the Saudi and UAE stock market for 11 years (2011-2021), i.e., 1067 firm year’s observations. This study is based on the agency's theory that illustrates the relationship between variables.  STATA and Eviews software by 2-way fixed effects model with (White diagonal standard errors) are used to analyze data using multiple regressions. The results reveal that the adoption of IFRS is significantly and positively associated with REM activities. Furthermore, all board characteristics are significantly influencing the REM at 1% and 5% levels. The outcomes also indicate that board independence, CEO duality, and board diversity are positively moderating the role between IFRS and REM which could led to restrain EM practice. In developing countries like KSA & UAE, these results may have significant consequences.

Comment citer cet article

Ahmed Fadhil Saleh & Siwar Ellouz (2024), "The moderating role of corporate governance mechanisms in the relationship between IFRS and Real Earning Management: Evidence from KSA and UAE", International Journal of Management And Technologies Journal, Vol.19, N°1, pp:48-69.