This research investigated the relationship the board of directors’ characteristics (involving board size, board independence, CEO duality and board meeting) have with REM in Jordanian listed firms. The data, which covered 721 firm-year observations for the period of 7 years (2011-2017), were sourced from the annual reports of the listed industrial and service sector companies on Amman Stock Exchange (ASE). The results from data analysis show a non-significant relationship between board independence and REM. However, a significant positive link between board size and REM and between CEO duality and REM were found. In the case of board meeting and REM, a significant but negative link was found between the two variables. In short, the findings of the current study indicate that board of directors’ characteristics are a significant determinant of REM, and this could provide more policy insights and research implications for the policy and strategy formulation regarding the credibility of financial reports in Jordan. Yet, the directions of the relationship between board of directors’ characteristics and REM could be determined by a contingent variable, which can be determined by the future research.
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In-Text Citation: (Kharashgah et al., 2019)
To Cite this Article: Kharashgah, K. A., Amran, N. A. B., & Rokia Binti Ishak. (2019). Board of directors’ structure and Real Earnings Management: Jordanian Evidence. International Journal of Academic Research in Business and Social Sciences, 9(12), 728–746.
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