A company's fund maily comes from shareholders and creditors, but after they provide fund, they do not directly participate in the company's management decision. Instead, they appoint managers to operate the company. Calculation of economic profits, affected the estimation methods of accounting and business unit management, Managers can easily make decision unfavorable to the company for their personal benefits ( Jensen & Meckling, 1976).
This paper investigates the relationship between the board of directors' characteristics and earning management for comanies listed in Tehran Stock Exchange. We used the earnings managemen score as a dependent variable and board of directors' attributes as independent variable.
The present study considers the percentage of non-bounded board members, board size, presence of woman members in the board director, financial knowledge, managerial ownership, duality and change in members as the corporate board's attributes. Based on a sample 329 company- years observations withinfirms listed in Tehran Stock Exchange (TSE) during the period of 1385-1389.
The results indicate a significant relationship between the percentage of non-bounded board members, presence of woman members in the board director and the earning management. However, no significant relationship were found for the other attributes.
namazi M, Pakdel M. The Relationship Between Board of Director's Attributes and Earnings Management. 3 2012; 2 (3) :5-34 URL: http://mta.raja.ac.ir/article-1-73-en.html