Earnings Management and the Role of Governance and Directors

Thu, 14 Jul 2016 09:47:00 BST

The Business School’s Emerging Markets Research Group (EMERGE) heard Nouran Nabil, an Erasmus Mundus UNetBA scholarship holder from Egypt, present her research on 'The Governance Role of Board of Directors' Characteristics and Its Impact on Earnings Management'.

Nouran says about her research "Earnings management has become an issue of critical importance in today's capital markets. Understanding what earnings management constitutes and why it takes place is essential for users of financial statement information. During the last decade, policymakers, regulators, investors and other market participants have become increasingly aware of the need for corporations to have sound corporate governance policies and procedures. A major cause of the failure of corporations such as Enron, Tyco, and WorldCom was due in part to a weakness in their corporate governance systems as each allowed management to have an excessive concentration of power. My research is looking at this issue and aims to bring better understanding of this problem."

Professor John Anchor, Director of the Emerging Markets Research Group, says "Nouran’s research deals with a highly topical area of modern business life. The issues that she is researching have major economic and political implications. I look forward to finding out more once she has completed her investigations."

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