Influence of corporate governance on choice of earnings management type
DOI:
https://doi.org/10.5007/2175-8069.2020v17n44p105Abstract
The study aims to analyze the influence of corporate governance (CG) in choosing the type of earnings management (GR). The sample comprised 179 Brazilian publicly traded companies, active in 2014 and that had sufficient data, disregarding companies belonging to the financial and insurance sector, for presenting different characteristics from the other companies that compose the sample. The period investigated was from 2014 to 2018, with data collected from the Thompson One Banker® data base, analyzed using descriptive statistics, multiple linear regression and logit regression. The results indicate that the CG is negatively related to the GR by real activities, not being found a significant relation of this with the GR by accruals. The robustness test showed a positive relationship between CG and environments with low GR for real activities and high GR for accruals. This study contributes to the literature and regulatory agencies by indicating that certain CG mechanisms can mitigate GR by actual activities, but do not have the same power in relation to GR by accounting choices.
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