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ZHANG, MEILIN (2020) The Relationship Between Earnings Quality and Corporate Governance of Software and Information Technology Service Industry in China. [Dissertation (University of Nottingham only)]

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Abstract

With the development of China's capital market, many listed companies have emerged, especially the development of software and information technology industry. Therefore, the earnings information disclosed by enterprises and the earnings quality of enterprises are very important because it is the basis that investors can refer to when investing. At the same time, effective corporate governance is conducive to establish a reasonable and scientific company strategic decision making, implementation and supervision system. Therefore, the purpose of this paper is to research and analyse the relationship between earnings quality and corporate governance in China's software and information technology (IT) service industry.

This paper selects the data of 259 enterprises from 2017 to 2019 as the sample, takes the absolute value of discretionary accruals as the dependent variable and the larger the value, the lower the earnings quality. Then, selecting 7 independent variables related to corporate governance to construct the model. Then, selecting appropriate regression method after the correlation test and test whether the model has autocorrelation and heteroscedasticity. It is concluded that that only two corporate governance variables are the decisive factors.

Firstly, supervisory board size is positively related with earnings quality and significant at 0.05 level. Similarly, executive size also positively correlated with earnings quality and significant at 0.01 level. Although the board size, board independence and top three compensation are positive to earnings quality, they are not significant.

Similarly, frequency of board meeting and duality of chairman and CEO are negative to earnings quality, but they are insignificant.

Keywords: Earnings quality, corporate governance

Item Type:	Dissertation (University of Nottingham only)
Depositing User:	Zhang, Meilin
Date Deposited:	13 Apr 2023 10:33
Last Modified:	13 Apr 2023 10:33
URI:	https://eprints.nottingham.ac.uk/id/eprint/62287

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