Jensen and Meckling (1976) posit that agency problem arises fundamentally because of conflict of interests between shareholders and managers
The research questions of the present paper have been motivated by the Global Financial Crisis (GFC) that hit almost the whole globe in 2007-2008. The purpose of the current study is to examine the effect of the global financial crisis on the level and direction of earnings management during crisis period as well as the effect of this crisis on the level and structure of executive compensation during the same period using a sample of the UK FTSE 350 nonfinancial companies. Regarding the effect of global financial crisis on earnings management practices; the results showed that firms engaged in higher levels of earnings management. More specifically, the findings revealed that firms managed earnings downward during the crisis period. These results are consistent with the argument that firms may have recourse to income decreasing earnings management during crisis periods to gain governmental aid, relax debt covenant and lower interest rates. With regard to the impact of the GFC on executive compensation, the results indicated that the sample firms provided less total compensations during the crisis period; however firms offer higher salaries, bonus, and direct compensations. Surprisingly, the results show that CEO’s ownership increased during the crisis period, implying that they could not anticipate the financial crisis. Moreover, the study reported that the quality of corporate governance system of the sample companies does not have a significant effect on earnings management practices or on the level and structure of executive compensations during the crisis period.
To the best of the author’s knowledge, this paper is one of the first papers that examine the impact of the GFC on earnings management and executive compensations using UK data, as most of the extant literature have been undertaken in the US. Although both countries represent the Anglo-American model of corporate governance, the UK has a different institutional environment regarding many aspects of executive compensation. Therefore, the results of US studies cannot be generalised to the UK. The current paper also provides up-to-date evidence regarding the implications of the GFC on earnings management and executive compensations. The results presented in the current study provide more understanding of the consequences of financial crises on earnings management and executive compensations, especially with the absence of any consensus in this regard.
رسالة دكتوراه عن الصكوك السيادية وهدف الدراسة وضع إطار محاسبي يوضح طبيعة الصكوك السيادية وكيفية القياس والإفصاح المحاسبي عنها والتعرف على مشكلات المحاسبة والمراجعة الناتجة من التطبيق ووضع إطار محاسبي لمعالجتها وفقاً للقانون رقم 138 لسنة 2021.
رسالة ماجستير عن البرامج التدريبية وهدف الدراسة الحالية لبيان متطلبات المواصفة الدولية 10015 في البرامج التدريبية وأثرها في أداء المديرين في أمانة عمان الكبرى.
رسالة ماجستير عن الخدمات المصرفية الإلكترونية وهدف الدراسة التعرف على نظام الخدمات المصرفية الإلكترونية عبر SMS وفقاً لأبعاد (الثقة، القيمة المدركة، الرضا، جودة الخدمة).
رسالة ماجستير عن الميزة التنافسية وهدف الدراسة بيان علاقة إدارة التصميم بتحقيق الميزة التنافسية لشركات الإنشاء والتعمير العاملة في الأردن.
سجل الدخول لتتمكن من التعليق
في المحاسبين العرب، نتجاوز الأرقام لتقديم آخر الأخبار والتحليلات والمواد العلمية وفرص العمل للمحاسبين في الوطن العربي، وتعزيز مجتمع مستنير ومشارك في قطاع المحاسبة والمراجعة والضرائب.