This dissertation aims to assess whether certain characteristics of the board of directors of Portuguese companies listed on the stock exchange have an impact on their levels of earnings manipulation. Therefore, it was investigated the impact that the proportion of non-executive directors and the presence of an audit committee on the board of directors have on the levels of manipulation of results, as well as the distinction of functions between the chairman of the board of directors and the executive director. For this, the methodology used was a multiple linear regression to assess how the manipulation of results is related to the variables under study. The modified cross-sectional Jones model was also used, with the principle of this model determining the manipulation of results through discretionary accruals. The necessary data were extracted from the Refinitiv Eikon database, with the complement of the companies' financial and corporate governance reports. The sample consists of an aggregate of 40 Portuguese companies listed on the stock exchange, which were part of the PSI Geral in the period from 2016 to 2020. Regarding the results achieved, this work shows that, for the sample in question, the proportion of non-executive directors on the board of directors and the distinction of roles between the chairman and the CEO have no impact on the levels of manipulation. On the other hand, it was possible to conclude a negative relationship between the existence of an audit committee integrated in the board of directors and the practice of earnings manipulation.
- Earnings management
- Discretionary accruals
- Modified Jones model
- Corporate governance
- Board of directors
Características do conselho de administração e manipulação de resultados em empresas cotadas na Euronext Lisbon
Monteiro, J. P. R. (Student). 12 Oct 2022
Student thesis: Master's Thesis