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


The Impact of Board Characteristics on Earnings Management in the International Oil and Gas Corporations

Author(s): Hosam Alden Riyadh Al Azeez, Eko Ganis Sukoharsono, Roekhudin, Wuryan Andayani

This study examined whether the Board Characteristics have any impact on Earnings Management among the international Oil and Gas Corporation in the world. The Board Characteristics such as (board independence, board size, board diversity, and CEO duality). This study applied a quantitative research approach, secondary data, a sample of 71 corporations were selected from Top 250 corporations for one year (2016). The findings of this study indicated that the board independence has a significant impact on the reduction of earnings management. In contrast, the board size does not have any impact on the reduction of earnings management, due the larger the board size less efficient on monitoring of the board, when there are more members on the board it is more difficult for the board members to monitor the management, While gender diversity has a significant impact on the reduction of earnings management, Finally, The CEO Duality has a significant impact on the increase of earnings management, which means the separating the functions of CEO and Chair of the Board may enhance the Board of Directors’ monitoring and control ability, and improve Directors’ information processing capacities.