The Role of Corporate Governance in Mitigating Earnings Management Practices

Abstract

The aim of the research is to clarify the role and importance of corporate governance (CG) mechanisms in mitigating earnings management (EM) practices. To achieve this objective, reference was made to previous studies and relevant research. An analysis was mentioned in accounting about the relationship between agency theory and earnings management clarifying the theoretical framework for earnings management from where the concept, motives, techniques of earnings management, methods of disclosure of earnings management, the risks resulting from earnings management, as well as know corporate governance, in terms of concept, goals, importance, principles, characteristics, and mechanisms of corporate governance, and finally, the role of corporate governance in limiting earnings management practices.