The impact of corporate governance and agency effect on earnings management – A test of the dual banking system
| Autor: | Jayalakshmy Ramachandran, Nafis Alam, Aisha Homy Nahomy |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
040101 forestry
050208 finance Religious values Leverage (finance) business.industry Corporate governance 05 social sciences Agency cost Islam Accounting 04 agricultural and veterinary sciences Profit (economics) Earnings management Sharia 0502 economics and business 0401 agriculture forestry and fisheries Business Management and Accounting (miscellaneous) Business Finance |
| Zdroj: | Research in International Business and Finance. 54:101242 |
| ISSN: | 0275-5319 |
| DOI: | 10.1016/j.ribaf.2020.101242 |
| Popis: | This study investigates the impact of the Board characteristics, Chief Executive Officer’s (CEO) power and Shariah supervision on Earnings Management (EM) within conventional and Islamic banks. We provide evidence that EM levels do not significantly differ between Islamic and conventional banks. Contrary to public belief, additional value-based attributes such as the Shariah Supervisory Board (SSB) that promotes ethical and religious values, do not help in the restriction of opportunistic behaviour in Islamic banks. Additionally, attributes such as board size, firm size and leverage have a significant negative influence on EM of both Islamic and conventional banks. Our results are important in deliberating that the word ‘Islamic’ must not be used merely as a profit manifestation, but instead must promote a value-based business, which in turn could ensure reliability and sustainability. |
| Databáze: | OpenAIRE |
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