IDEAS home Printed from https://ideas.repec.org/a/sae/sagope/v14y2024i4p21582440241290348.html
   My bibliography  Save this article

Implications of Policies and Governance on Financial Sustainability in the Light of Earning Management: An Evidence from an Emerging Economy

Author

Listed:
  • Sarah Qaim
  • Nazima Ellahi

Abstract

The purpose of this study is to analyze the impact of corporate governance and policies on financial sustainability in the presence of earnings management as the moderator in an emerging economy-Pakistan. The study’s population is the manufacturing industry of Pakistan that has 25 sectors and 295 firms listed with the Pakistan stock exchange PSX. Data was collected from Thomson Reuters Datastream for all the 295 firms. Panel data analysis was carried out to examine the impact of the variables of interest. Analysis reveals that out of the two independent variables; that is, corporate governance and policies, the former has a significant impact on financial sustainability. Furthermore, in direct relation earnings management is negatively affecting the financial sustainability of the corporates and the impact is significant with the p -value of .044. Earnings management as a moderator also has a negatively significant impact on the relationship between corporate governance, policies, and financial sustainability with a p -value of .042. This study would help the government and policymakers in making sustainable policies and frameworks.

Suggested Citation

  • Sarah Qaim & Nazima Ellahi, 2024. "Implications of Policies and Governance on Financial Sustainability in the Light of Earning Management: An Evidence from an Emerging Economy," SAGE Open, , vol. 14(4), pages 21582440241, October.
  • Handle: RePEc:sae:sagope:v:14:y:2024:i:4:p:21582440241290348
    DOI: 10.1177/21582440241290348
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/21582440241290348
    Download Restriction: no

    File URL: https://libkey.io/10.1177/21582440241290348?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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:sae:sagope:v:14:y:2024:i:4:p:21582440241290348. 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: SAGE Publications (email available below). General contact details of provider: .

    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.