International Journal of Accounting and Management Sciences (IJAMS)
IJAMS Vol.4 No.2 April 2025
DOI https://www.doi.org/10.56830/IJAMS04202501
Authors
Abstract
This research aims to review the previous empirical evidence in the literature to provide an
overview of the complex nexus between board and ownership structures and earnings
management. Through a critical review of scholars spanning diverse geographical contexts and
periods, the review analyzed the impact of various board characteristics (size, independence,
composition, CEO duality, meeting frequency, and gender diversity) and ownership types
(managerial, institutional, foreign, state, and concentrated) on the extent and direction of EM.
The findings ensured that while certain board attributes, such as independence and size, and
specific ownership structures, such as institutional ownership, are generally expected to limit
EM, the evidence is often mixed. This research underscores the importance of considering the
dynamic interplay of various governance mechanisms and the potential endogeneity issues in
understanding the effectiveness of corporate governance in curbing earnings management.
Finally, this paper contributes to developing more understanding of the multifaceted nexus
between board and ownership structures and EM. Moreover, it assumes future research that
develops more robust and context-specific scholars.
Keywords: Board of Directors / Ownership Structures / Earnings Management / Managerial
Manipulation / Business Environment.
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