Role of Social Relations of Outside Directors with CEO in Earnings Management
AbstractThe purpose of this study is to examine the impact of social relations among the board members on earnings management in Pakistani listed companies. Specifically, we have analyzed the social networks between CEO and outside board members. The modified Jones model has been used in this study to measure earnings management and we have captured social relations through SOCIAL (Social networking index). Our results suggest that firms with more connected boards show a positive relationship between board independence and earnings management. Further, we have shown that firms with CEO duality exhibit a higher association between social connections of the board and earnings management than firms with non-duality. Social relations among the board members undermine monitoring ability of outside directors and the impact becomes more severe in the presence of CEO duality. View Full-Text
Scifeed alert for new publicationsNever miss any articles matching your research from any publisher
- Get alerts for new papers matching your research
- Find out the new papers from selected authors
- Updated daily for 49'000+ journals and 6000+ publishers
- Define your Scifeed now
Shaique, M.; Guo, F.; Shaikh, R.; Khan, S.; Usman, M. Role of Social Relations of Outside Directors with CEO in Earnings Management. Int. J. Financial Stud. 2017, 5, 34.
Shaique M, Guo F, Shaikh R, Khan S, Usman M. Role of Social Relations of Outside Directors with CEO in Earnings Management. International Journal of Financial Studies. 2017; 5(4):34.Chicago/Turabian Style
Shaique, Muhammad; Guo, Fei; Shaikh, Ruqia; Khan, Shahbaz; Usman, Muhammad. 2017. "Role of Social Relations of Outside Directors with CEO in Earnings Management." Int. J. Financial Stud. 5, no. 4: 34.
Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.