Value relevance, earnings management and corporate governance in China

Yuan George Shan

Emerging Markets Review, 2015, vol. 23, issue C, 186-207

Abstract: This study investigates whether earnings management reduces the level of value relevance and whether good corporate governance restrains earnings management. Using hand-collected data comprising 1012 firm-year observations from all companies listed on the Shanghai SSE 180 and the Shenzhen SSE 100, the results show that the negative impact of value relevance for the companies engaged in earnings management is greater than the companies that have not engaged in earnings management engagement. Furthermore, the companies with good corporate governance practices are more likely to constrain earnings management than those without.

Keywords: China; Corporate governance; Earnings management; Value relevance (search for similar items in EconPapers)
JEL-codes: G31 G32 G34 G38 M41 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1566014115000217
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ememar:v:23:y:2015:i:c:p:186-207

DOI: 10.1016/j.ememar.2015.04.009

Access Statistics for this article

Emerging Markets Review is currently edited by Jonathan A. Batten

More articles in Emerging Markets Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().