Does corporate governance mechanism deter earnings management and enhance readability of annual reports?

ABSTRACT: This study aims to know the impact of earnings management (accrual, real and total) and corporate governance mechanisms on the readability of annual reports. Additionally, the study also seeks to know the moderating impact of corporate governance mechanisms between earnings management (accruals, real and total) and readability of annual reports. The sample of the study consists 250 listed firms of Pakistan Stock Exchange (PSX) for the period of 2014-2022. The hypotheses are tested using System GMM technique. The results of the study suggest that earnings management (accruals, real and total) has negative and significant impact on readability of annual reports. However, all four corporate governance mechanics have a significantly positive impact on readability of annual reports. Additionall

SUBMITTER: Zheng D 

PROVIDER: S-EPMC11828418 | biostudies-literature | 2025

REPOSITORIES: biostudies-literature