أثر حوكمة الشركات على سياسة إدارة الأرباح : دراسة تطبيقية على سوق المال السعودي 2014-2019

Abstract EN

This study examined Corporate Governance (CG) impact on earnings management (EM) practices in Saudi Stock Market.

To achieve the study aims, the study problem was formulated and summarized to address the following research questions: Do the companies listed in the Saudi Stock Market practice EM practices; Is there a statistical relationship between CG with its main four main variables (Board size, Board independence, Board meetings, and CEO duality) and EM practices.

The study sample size consisted of 128 services and manufacturing companies.

Data was collected from companies’ reports available on the Saudi Stock Market website.

The collected data has been analyzed (quantitatively) through the statistical program (EVIEWS) using appropriate tests and statistical treatments such as descriptive statistics, linear and multiple regression in order to reach results that support the subject of the research.

The results showed that %91 of the Saudi company's practices earnings management, the results showed a negative relationship between companies’ Board size and EM, and positive relationships between Board independence, Board meetings, and EM.

However, there is no statistical relationship between CEO duality and EM, the study recommended in order to decrease the EM’s levels, and increase the CG levels, more control, more developments should be worked on, and new policies and regulations should be developed by the decision-makers makers in the country.