The Impact of Board Characteristics on Earnings Management in Industrial Companies Listed in Amman Stock Exchange
摘要
The aim of this chapter is to investigate how board characteristics influence earnings management in Jordanian industrial companies that are listed in Amman Stock Exchange (ASE). To fulfil this goal, a descriptive-analytical approach was used. The researchers collected data on the independent variables (management characteristics) from annual reports and disclosures, while financial data on the dependent variable (earnings management) was collected using a modified Jones (1995) model. The chapter covered a population of 46 industrial enterprises and the sample size was 31 enterprises for the period from 2014 to 2022. The study results showed that management characteristics have a significant impact on earnings management. In particular, board size, independence and meeting frequency were found to have a significant negative impact on earnings management. However, the study did not find any impact of women’s representation on earnings management. In the light of these findings, it is recommended to increase the effectiveness of management board members in supervising the executive staff in order to ensure the implementation of stakeholder interests. Additionally, it is recommended to promote diversity in the composition of boards.