This paper empirically and critically investigates the issue of creative accounting in financial reporting. It not only analyzes the ethical responsibility of creative accounting but also focuses on other factors which influence the financial reporting like role of auditors, role of government...

Assembling the right management team is a challenging and complex process in today’s global economy. The recent worldwide financial meltdown has simply underscored the importance of a far-sighted and balanced management organisation. The characteristics and composition of the management team...

Audit committees play very important roles in financial aspects of governance as they help ensure audit quality while at the same time protecting the interest of investors. This paper attempts an x-ray of the factors that tend to diminish the importance of Audit Committees in corporate...

Internal auditors play an important role in influencing managers’ judgments. Yet, the practitioner literature indicates that, because internal audit lacks the client services incentives of external audit, internal auditors often adopt a “policeman approach” that can lead to negative...

The aim of this paper is to explain relationship between earning management, corporate governance and managerial optimism through the governance characteristics that are board of directors such as independence, duality and size and ownership structure such as managerial participation, block...

Purpose – The purpose of this paper is to shed light on the European Union’s (EU) latest regulatory principles for environmental, social and governance (ESG) disclosures. It explains how some of the EU’s member states are ratifying the EU Commission’s directives on ESG reporting by...

This paper examines whether firms that act socially responsible and have favourable board characteristics engage in a more transparent financial reporting. In particular, the first question is whether firms with high corporate social responsibility (CSR) engagement exhibit less earnings...

IAS-24 of the International Financial Reporting Standards focuses on the concept and disclosures of related party transactions (RPTs) for a reporting entity. This study examines the interrelationship between RPTs (as disclosed under IAS-24), agency theory, ownership structures and firm...

Board of directors is one of the internal governance mechanisms that are intended to ensure that the interests of shareholders and managers are closely aligned. Among the most significant governance issues currently faced by the modern corporation are those relating to diversity. In this paper,...

We examine how compensation of chief executive officer (CEO) and corporate governance practices affect earnings management behavior in an emerging economy, Pakistan. Using 1836 firm-year observations from 260 firms listed in KSE for period 2005 to 2012, we do not find that CEO compensation has...