Document Type : Research Paper

Authors

• Yahya Hassas Ycganeh
• Narges Yazdanian

Abstract

This research seeks to find an answer to this quest ion ''how do some corporate governance practices affect earning management in Iran?"
The investigated corporate governance principals in this research are: the percentage of institutional investors' ownership, the existence of non-executive directors  i n the board of  directors,  the  absence  (non-existence)  of  executive  directors as  the  chief   or   ......  of  board  of  directors,  the  existence  or internal auditors.
In   this research Jones modified   model   has been used   to determine earning management which is measured by discretionary accruals.  For this purpose, the data of   l77 firms during the years 1382 to 1384 have been used. The results of this research show that   when the percentage of institutional investors' ownership in firms is more than 45%,the earning management decreases.  Moreover the results show that there  is no meaningful correlation  between  the  existence  of  non-executive  directors  in the board  of  directors, the  absence (non-existence)  of  executive directors as the chief or  ...... of  board  of d i rectors, the existence of internal auditors and earning management.

Keywords

• Corporate Governance
• earning management
• institutional investor
• non-executive director
• internal auditor