Do UK Real Estate SMEs' Board Characteristics Affect Accrual-Based and Real Activities-Based Earnings Management?

This study surveyed the connection between board characteristics and accrual-based earnings management (AEM) and real activities-based earnings management (RAEM) in UK real estate small and medium-sized enterprises (SMEs). From 2016 to 2018, a total of 144 annual observations of real estate SMEs fro...

Full description

Bibliographic Details
Main Author: CHAO, RUIXI
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2020
Online Access:https://eprints.nottingham.ac.uk/62045/
_version_ 1848799928653971456
author CHAO, RUIXI
author_facet CHAO, RUIXI
author_sort CHAO, RUIXI
building Nottingham Research Data Repository
collection Online Access
description This study surveyed the connection between board characteristics and accrual-based earnings management (AEM) and real activities-based earnings management (RAEM) in UK real estate small and medium-sized enterprises (SMEs). From 2016 to 2018, a total of 144 annual observations of real estate SMEs from the UK FTSE 350 were sampled. The capture of AEM uses the traditional Jones model (1991), and three separate components of RAEM proposed by Roychowdhury (2006) and Kim and Park's (2014) comprehensive RAEM indicator were applied to determine the level of earnings management (i.e., the dependent variable). The independent variables are these SMEs' board characteristics: board size, board non-executive directors (NEDs), board meetings, board gender diversity and CEO duality. Then, performing Stata software to obtain descriptive statistics, Pearson correlation and regression analysis on the collected data, which constructs a linear regression model of board characteristics and earnings management. The final results of the study demonstrated that board characteristics of British real estate SMEs could restrain the opportunistic AEM and RAEM to a certain extent. Specifically, board size impacted positively on both AEM and RAEM; the proportion of NEDs and gender diversity of the board negatively affected these two types of earnings management. However, the frequency of board meetings only has a negative correlation with RAEM; there is no significant connection between CEO duality and earnings management.
first_indexed 2025-11-14T20:43:28Z
format Dissertation (University of Nottingham only)
id nottingham-62045
institution University of Nottingham Malaysia Campus
institution_category Local University
language English
last_indexed 2025-11-14T20:43:28Z
publishDate 2020
recordtype eprints
repository_type Digital Repository
spelling nottingham-620452022-12-21T14:56:28Z https://eprints.nottingham.ac.uk/62045/ Do UK Real Estate SMEs' Board Characteristics Affect Accrual-Based and Real Activities-Based Earnings Management? CHAO, RUIXI This study surveyed the connection between board characteristics and accrual-based earnings management (AEM) and real activities-based earnings management (RAEM) in UK real estate small and medium-sized enterprises (SMEs). From 2016 to 2018, a total of 144 annual observations of real estate SMEs from the UK FTSE 350 were sampled. The capture of AEM uses the traditional Jones model (1991), and three separate components of RAEM proposed by Roychowdhury (2006) and Kim and Park's (2014) comprehensive RAEM indicator were applied to determine the level of earnings management (i.e., the dependent variable). The independent variables are these SMEs' board characteristics: board size, board non-executive directors (NEDs), board meetings, board gender diversity and CEO duality. Then, performing Stata software to obtain descriptive statistics, Pearson correlation and regression analysis on the collected data, which constructs a linear regression model of board characteristics and earnings management. The final results of the study demonstrated that board characteristics of British real estate SMEs could restrain the opportunistic AEM and RAEM to a certain extent. Specifically, board size impacted positively on both AEM and RAEM; the proportion of NEDs and gender diversity of the board negatively affected these two types of earnings management. However, the frequency of board meetings only has a negative correlation with RAEM; there is no significant connection between CEO duality and earnings management. 2020-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/62045/1/20147723_BUSI4153_Do%20UK%20Real%20Estate%20SMEs%27%20Board%20Characteristics%20Affect%20Accrual-Based%20and%20Real%20Activities-Based%20Earnings%20Management.pdf CHAO, RUIXI (2020) Do UK Real Estate SMEs' Board Characteristics Affect Accrual-Based and Real Activities-Based Earnings Management? [Dissertation (University of Nottingham only)]
spellingShingle CHAO, RUIXI
Do UK Real Estate SMEs' Board Characteristics Affect Accrual-Based and Real Activities-Based Earnings Management?
title Do UK Real Estate SMEs' Board Characteristics Affect Accrual-Based and Real Activities-Based Earnings Management?
title_full Do UK Real Estate SMEs' Board Characteristics Affect Accrual-Based and Real Activities-Based Earnings Management?
title_fullStr Do UK Real Estate SMEs' Board Characteristics Affect Accrual-Based and Real Activities-Based Earnings Management?
title_full_unstemmed Do UK Real Estate SMEs' Board Characteristics Affect Accrual-Based and Real Activities-Based Earnings Management?
title_short Do UK Real Estate SMEs' Board Characteristics Affect Accrual-Based and Real Activities-Based Earnings Management?
title_sort do uk real estate smes' board characteristics affect accrual-based and real activities-based earnings management?
url https://eprints.nottingham.ac.uk/62045/