Essay About Corporate Governance And Earnings Management

Corporate Governance and Earnings Management – an Empirical Study
[pic 1]CORPORATE GOVERNANCE AND EARNINGS MANAGEMENT:AN EMPIRICAL STUDYBYYuan He1330006039ACCTYaozhen Niu1330006106ACCTA Business Project Submitted to the Division ofBusiness and Management in Partial Fulfilment ofthe Graduation Requirements for the Degree ofBachelor of Business Administration (Honours)Submitted toDr. Wingsun LIBeijing Normal University – Hong Kong Baptist UniversityUnited International CollegeApril 2017ContentsAcknowledgement        2Abstract        3Introduction        4Background of the problems        4Objectives and Significance        4Literature Review        5Hypotheses        9Conceptual framework        9Methodology        11Subjects        11Procedures        12Sample and data collection        14Analysis and Results        14Discussion         19Interpretation        19Limitations of the study        20Recommendations        21Conclusion        21References        23Appendix        25Acknowledgement This research paper is a business project submitted to the Division of Business and Management in partial fulfilment of the graduation requirements for the Degree of Bachelor of Business Administration, supported by Dr. Wing Sun LI.Abstract Former researchers have examined the influence of corporate governance and earnings management on corporate performance in foreign nations, such as Latin America, Australia and Korea. Similarly, this influence is also worth investigating in Chinese market. As for this paper, researchers aim to find out the relationship among corporate governance, earnings management and corporate performance in the Chinese market. We use the sample of A-share listed Chinese companies in the year of 2015. Our results show that corporate governance in terms of board size and board activity has influence on return on assets (ROA), which are the indicators of corporate performance. In detail, board size positively affects ROA, whereas, board activities negatively impacts ROA. Meanwhile, earnings management cannot mediate corporate performance by total discretionary accruals (TDA). The findings have implications that companies especially large listed ones should stress importance on corporate governance mechanisms to enhance the corporate performance, given that earnings management could not mitigate the conflicts between corporate governance and corporate performance.