Academy of Accounting and Financial Studies Journal (Print ISSN: 1096-3685; Online ISSN: 1528-2635)


The Effect of Family Ownership and Board Characteristics on Earnings Management: Evidence from Jordan

Author(s): Hanady Bataineh, Murad Abuaddous, Enas Alabood

This study examines the effect of family ownership and board characteristics on Earnings Management (EM) in Jordan. This study combines the explanation provided in Agency Theory (Type II) and Socio-Emotional Wealth Theory (SEW) in order to understand how family firms are motivated for EM practices. This study also investigates the effect of board size, CEO duality and board education on EM practices. Using Modified Jones Model (1991), a sample of 43 Jordanian industrial firms listed in Amman Stock Exchange (ASE) with a total of (258) firm-year observations for the period from 2011-2016 reveals a significant positive association between family ownership and EM but no evidence is found to support that board size, CEO duality and board education have an impact on EM decisions.

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