Version 1
: Received: 17 May 2023 / Approved: 18 May 2023 / Online: 18 May 2023 (05:50:50 CEST)
How to cite:
Aryal, R.; Emambocus, W.; Dhesi, G.; Eguruze, E.S. A Quantitative Study on the Effectiveness of the Governance Attributes on ‘Industry-Wise Earnings Quality’ in the UK. Preprints2023, 2023051281. https://doi.org/10.20944/preprints202305.1281.v1
Aryal, R.; Emambocus, W.; Dhesi, G.; Eguruze, E.S. A Quantitative Study on the Effectiveness of the Governance Attributes on ‘Industry-Wise Earnings Quality’ in the UK. Preprints 2023, 2023051281. https://doi.org/10.20944/preprints202305.1281.v1
Aryal, R.; Emambocus, W.; Dhesi, G.; Eguruze, E.S. A Quantitative Study on the Effectiveness of the Governance Attributes on ‘Industry-Wise Earnings Quality’ in the UK. Preprints2023, 2023051281. https://doi.org/10.20944/preprints202305.1281.v1
APA Style
Aryal, R., Emambocus, W., Dhesi, G., & Eguruze, E.S. (2023). A Quantitative Study on the Effectiveness of the Governance Attributes on ‘Industry-Wise Earnings Quality’ in the UK. Preprints. https://doi.org/10.20944/preprints202305.1281.v1
Chicago/Turabian Style
Aryal, R., Gurjit Dhesi and Ebikinei Stanley Eguruze. 2023 "A Quantitative Study on the Effectiveness of the Governance Attributes on ‘Industry-Wise Earnings Quality’ in the UK" Preprints. https://doi.org/10.20944/preprints202305.1281.v1
Abstract
This study investigates the impact of governance variables on the earnings quality based on the industry the firm is in. it has been identified that earnings management have been practised differently by different industries. Most of the research under earnings management have focussed on holistic impacts of corporate governance variables on discretionary accruals while this study has categorised the firms based on what industry they fall on while identifying the impacts of the variables of corporate governance on discretionary accruals. Initially, this paper has studied the estimation of the value of discretionary accruals and identified that performance matched discretionary accruals as the best model as per the explanatory power of the model is higher than other models. Hence, the estimation of the earnings management has been calculated based on performance matched discretionary accruals in this research. This research has studied the impacts of the governance attributes on the earnings management categorising the firms based on the industry they are in; hence, the value of earnings management has been categorically separated; hereafter, the impact of the corporate governance factors on the value of categorically separated earnings management have been statistically analysed. This study has considered the descriptive study to compare the means, medians and standard deviations of the earnings management of various industries. Moreover, Pearson correlations and Spearman rank correlation have been used as a research tool to examine the correlation coefficients.
Business, Economics and Management, Econometrics and Statistics
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
