IDEAS home Printed from https://ideas.repec.org/a/ids/ijcgov/v9y2018i2p149-174.html
   My bibliography  Save this article

Audit committee characteristics, board ethnic diversity and earnings management: evidence from Kenya and Tanzania

Author

Listed:
  • Nelson Waweru

Abstract

This paper investigates the relationship between audit committee characteristics, board ethnic diversity and earnings management in Eastern Africa. We attempt to determine whether compliance with audit committee guidelines has constrained earnings management in companies operating in an environment where control of corruption is considered weak. We include firm performance to the modified Jones model to measure discretionary accruals. The data are collected from annual reports over the period 2005-2014 resulting to a total of 480 firm-year observations. Panel data models are employed in the analyses. The results show that absolute discretionary accruals average about 11.5%, while the independence of the audit committee, the presence of a financial expert on the audit committee and board ethnic diversity were negatively and significantly related to earnings management. We also find that audit committee structures are not country specific.

Suggested Citation

  • Nelson Waweru, 2018. "Audit committee characteristics, board ethnic diversity and earnings management: evidence from Kenya and Tanzania," International Journal of Corporate Governance, Inderscience Enterprises Ltd, vol. 9(2), pages 149-174.
    • Handle: RePEc:ids:ijcgov:v:9:y:2018:i:2:p:149-174
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=91271
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Susana Callao & José I. Jarne & David Wróblewski, 2019. "A New Perspective on Earnings Management in Emerging European Countries: Investigation on Environmental Factors that Explain Differences in Earnings Management," Journal of Accounting, Business and Finance Research, Scientific Publishing Institute, vol. 7(2), pages 59-81.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijcgov:v:9:y:2018:i:2:p:149-174. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=260 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.