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Effects of Board Size, Board Composition and Dividend Policy on Real Earnings Management in the Jordanian Listed Industrial Firms

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  • Yousef Shahwan
  • Tareq Hammad Almubaydeen

Abstract

Earning manipulation has been a normal transaction among the global businesses, in which business organization sees it as beneficial, thereby turning black eyes to its negative impact on the general economy. This study aimed at examining the impact of board size, Board composition and dividend policy on real earnings management in the listed Jordanian industries. 8 years data (2010 to 2018) was extracted from the audited financial reports of the selected firms. Data was analyzed using Structural Model via AMOS version 26 and SPSS version 21. The findings revealed a positive and significant effect between board size, board composition and real earning management at p-value 0.05 (two-tailed). This study has immensely contributed towards bridging the gap in the existing knowledge as it documented a new finding. The benefits of these findings cross over the managers, shareholders, board of directors, investors, the Jordanian government and all other relevant institute for the buildup of the healthiest industrial sector and better economy.

Suggested Citation

  • Yousef Shahwan & Tareq Hammad Almubaydeen, 2020. "Effects of Board Size, Board Composition and Dividend Policy on Real Earnings Management in the Jordanian Listed Industrial Firms," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(4), pages 195-202, July.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:4:p:195-202
    DOI: 10.5430/ijfr.v11n4p195
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    References listed on IDEAS

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    1. Omar Farooq & Nermeen Shehata & Siva Nathan, 2018. "Dividend Policy and Informativeness of Reported Earnings: Evidence from the MENA Region," International Review of Finance, International Review of Finance Ltd., vol. 18(1), pages 113-121, March.
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    4. Fama, Eugene F & Jensen, Michael C, 1983. "Separation of Ownership and Control," Journal of Law and Economics, University of Chicago Press, vol. 26(2), pages 301-325, June.
    5. Xie, Biao & Davidson, Wallace III & DaDalt, Peter J., 2003. "Earnings management and corporate governance: the role of the board and the audit committee," Journal of Corporate Finance, Elsevier, vol. 9(3), pages 295-316, June.
    6. Imoleayo F. Obigbemi & Eddy O. Omolehinwa & Dick Oluku Mukoro & Egbide Ben-Caleb & Olamide Adeola Olusanmi, 2016. "Earnings Management and Board Structure," SAGE Open, , vol. 6(3), pages 21582440166, September.
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    Cited by:

    1. Fuad Suleiman Al-Fasfus & Abdulwahhab Mahmoud Al-Rawashdeh & Ziyad Abdulhaleem Al-Theebeh & Hasan Abdulnasser Mohamad Al-Enabi, 2022. "The Impact of Accounting Conservatism on Financial Performance in Services Companies Listed on Amman Stock Exchange," Academic Journal of Interdisciplinary Studies, Richtmann Publishing Ltd, vol. 11, July.

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