Boards Characteristics and Earnings Quality: UK Evidence

Nur, Nalini (2016) Boards Characteristics and Earnings Quality: UK Evidence. [Dissertation (University of Nottingham only)]

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Abstract

This study attempts to observe the effect of board characteristics of non-financial UK

firms on their earnings qualities. Using 259 firms out of the total 351 constituents of FTSE 350

during 2012 until 2015, we employ the modified-Jones model to calculate the abnormal accruals

as proxies for earnings quality. We pay attention to five aspects of board characteristics: the

board size, the percentage of independent directors; the number of board meetings in a year,

Chief Executive Officer (CEO) age, and Chief Financial Officer (CFO) age. We find that the

earnings quality will increase when firms have higher percentages of independent directors.

Further, young CEOs lead to better earnings qualities compare to old CEOs, particularly old CEOs

in their final pre-retirement year. Finally, we do not find the impact of board size, the number of

board meetings and CFO age on earnings quality.

Item Type: Dissertation (University of Nottingham only)
Keywords: Board characteristics, corporate governance, earnings quality
Depositing User: NUR, NALINI
Date Deposited: 09 Mar 2017 11:53
Last Modified: 13 Mar 2017 12:14
URI: http://eprints.nottingham.ac.uk/id/eprint/36448

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