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| Date: |
February 16, 2011 (Wednesday) |
| Time : |
2:30pm - 4:00pm |
| Language : |
English |
| Venue : |
Room 602, Meng Wah Complex, The University of Hong Kong |
| Presented By : |
Dr. Wang Xin, Assistant Professor, School of Accountancy, Chinese University of Hong Kong |
| Seminar title : |
Does increased board independence reduce earnings management?
Evidence from recent regulatory reforms
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| Abstract: |
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In this paper, we examine whether recent regulatory reforms requiring majority board independence are effective in reducing earnings management. Firms that did not have a majority of independent directors prior to the reforms (referred to as non-compliance firms) are required to increase their board independence. We find that overall, compared to the other firms, noncompliance firms do not experience a significant decrease in the extent of earnings management from prior to the reforms to afterwards. However, we find that non-compliance firms with low information acquisition cost experience a significant reduction in earnings management compared with the other firms. These findings indicate that independent directors’ monitoring is more effective in a richer information environment.
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| All Interested are Welcomed: |
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Request for presentation papers or enquires, please contact:
Miss Panda Tsu
Tel: 2241 5050 or pandatsu@business.hku.hk
The papers will also be available on the presentation. |
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