Author(s): Rasha Fallatah
The board structure of an organization is a significant factor in determining the success and failure of an organization. The board of directors influences the public image of an organization. The stakeholders of an organization need to be well aware of the current condition without including the managerial adjustments within the financial statements. The current study is focused on earning management and the influence of the independent board of directors within the financial institutes of the kingdom of Saudi Arabia. Earning management has a negative impact on the future progress and public image of the working institute. Jones modified model is applied to analyze the data of five different leading banks of the Kingdom of Saudi Arabia. The Regression analysis has presented results illustrating the non-significant relationship between the variables. The study has shown little to no relationship between earning management and independence of the board of directors; as, the high-level independence of the board of directors has a nominal impact on earning management activities recorded by the financial institutes of the Kingdom of Saudi Arabia.