Influence of board interlocking on earnings management
Autor(a) principal: | |
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Data de Publicação: | 2017 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng por |
Título da fonte: | Revista Contabilidade & Finanças (Online) |
Texto Completo: | https://www.revistas.usp.br/rcf/article/view/131270 |
Resumo: | The participation of directors on more than one board is called “board interlocking”. This phenomenon contributes to the spread of management and governance practices, through directors sharing their knowledge and experiences on other boards. Thus, directors could “carry” the earnings management practices present in one company into another in which they sit on the board. It is assumed that the greater directors’ direct or indirect connections on boards, the greater the sharing of information, especially information that can be reflected in company earnings quality. In light of the above, the aim of this study is to verify the influence of board interlocking on earnings management in companies listed on the São Paulo Stock, Commodities, and Futures Exchange (BM&FBovespa). The study is characterized as descriptive, quantitative, and documentary, and uses a sample of companies listed on the BM&FBOVESPA between 2011 and 2013. For earnings management, the model from Kang and Sivaramakrishnan (1995) was used, while for interlocking, degree centrality measures were used for direct board member connections, and intermediation centrality for indirect connections. The results indicate that earnings management is influenced by the interlocking of board members. It is concluded that the greater the degree centrality, the greater positive earnings management is, and that variations in positive and negative accruals are influenced by board member intermediation. The results reinforce the idea that earnings management behavior can be transferred between companies by the directors that make up their boards. |
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Influence of board interlocking on earnings managementInfluência do board interlocking no gerenciamento de resultadosboard interlockingboard of directorsearnings managementdegree centralityintermediation centralityboard interlockingconselho de administraçãogerenciamento de resultadoscentralidade de graucentralidade de intermediaçãoThe participation of directors on more than one board is called “board interlocking”. This phenomenon contributes to the spread of management and governance practices, through directors sharing their knowledge and experiences on other boards. Thus, directors could “carry” the earnings management practices present in one company into another in which they sit on the board. It is assumed that the greater directors’ direct or indirect connections on boards, the greater the sharing of information, especially information that can be reflected in company earnings quality. In light of the above, the aim of this study is to verify the influence of board interlocking on earnings management in companies listed on the São Paulo Stock, Commodities, and Futures Exchange (BM&FBovespa). The study is characterized as descriptive, quantitative, and documentary, and uses a sample of companies listed on the BM&FBOVESPA between 2011 and 2013. For earnings management, the model from Kang and Sivaramakrishnan (1995) was used, while for interlocking, degree centrality measures were used for direct board member connections, and intermediation centrality for indirect connections. The results indicate that earnings management is influenced by the interlocking of board members. It is concluded that the greater the degree centrality, the greater positive earnings management is, and that variations in positive and negative accruals are influenced by board member intermediation. The results reinforce the idea that earnings management behavior can be transferred between companies by the directors that make up their boards. A participação de um conselheiro em mais de um conselho de administração é denominada de board interlocking. Tal fenômeno contribui para a disseminação de práticas gerenciais e de governança, a partir do compartilhamento de conhecimentos e experiências dos conselheiros em outros conselhos. Assim, um conselheiro poderia “levar” práticas de gerenciamento de resultados presentes em uma empresa para outra da qual faça parte do conselho. Presume-se que quanto maior for sua conexão, direta ou indireta, em conselhos, maior pode ser o compartilhamento de informações, sobretudo que possam refletir na qualidade do resultado das empresas. Diante do exposto, o objetivo deste estudo é verificar a influência do board interlocking no gerenciamento de resultados das empresas listadas na Bolsa de Valores, Mercadorias e Futuros de São Paulo (BM&FBOVESPA). A pesquisa caracteriza-se como descritiva, quantitativa e documental, com uma amostra composta por empresas listadas na BM&FBOVESPA no período de 2011-2013. Para o gerenciamento de resultados utilizou-se o modelo de Kang e Sivaramakrishnan (1995), enquanto que para o interlocking utilizaram-se as medidas de centralidade de grau, para conexões diretas de conselheiros, e centralidade de intermediação, para conexões indiretas. Os resultados indicam que o gerenciamento de resultados é influenciado pelo interlocking dos membros do conselho de administração. Conclui-se que quanto maior a centralidade de grau, maior o gerenciamento positivo de resultados, bem como variações dos accruals positivos e negativos são influenciadas pela intermediação dos membros do conselho de administração. Os resultados reforçam que o comportamento de gerenciamento de resultados pode ser transmitido entre empresas por meio dos membros que compõem seus conselhos de administração.Universidade de São Paulo. Faculdade de Economia, Administração, Contabilidade e Atuária2017-08-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionapplication/pdfapplication/pdfapplication/xmlhttps://www.revistas.usp.br/rcf/article/view/13127010.1590/1808-057x201701980Revista Contabilidade & Finanças; v. 28 n. 74 (2017); 179-196Revista Contabilidade & Finanças; Vol. 28 No. 74 (2017); 179-196Revista Contabilidade & Finanças; Vol. 28 Núm. 74 (2017); 179-1961808-057X1519-7077reponame:Revista Contabilidade & Finanças (Online)instname:Universidade de São Paulo (USP)instacron:USPengporhttps://www.revistas.usp.br/rcf/article/view/131270/127663https://www.revistas.usp.br/rcf/article/view/131270/127664https://www.revistas.usp.br/rcf/article/view/131270/150868Copyright (c) 2018 Revista Contabilidade & Finançasinfo:eu-repo/semantics/openAccessCunha, Paulo Roberto daPiccoli, Marcio Roberto2017-04-18T20:00:34Zoai:revistas.usp.br:article/131270Revistahttp://www.revistas.usp.br/rcf/indexPUBhttps://old.scielo.br/oai/scielo-oai.phprecont@usp.br||recont@usp.br1808-057X1519-7077opendoar:2017-04-18T20:00:34Revista Contabilidade & Finanças (Online) - Universidade de São Paulo (USP)false |
dc.title.none.fl_str_mv |
Influence of board interlocking on earnings management Influência do board interlocking no gerenciamento de resultados |
title |
Influence of board interlocking on earnings management |
spellingShingle |
Influence of board interlocking on earnings management Cunha, Paulo Roberto da board interlocking board of directors earnings management degree centrality intermediation centrality board interlocking conselho de administração gerenciamento de resultados centralidade de grau centralidade de intermediação |
title_short |
Influence of board interlocking on earnings management |
title_full |
Influence of board interlocking on earnings management |
title_fullStr |
Influence of board interlocking on earnings management |
title_full_unstemmed |
Influence of board interlocking on earnings management |
title_sort |
Influence of board interlocking on earnings management |
author |
Cunha, Paulo Roberto da |
author_facet |
Cunha, Paulo Roberto da Piccoli, Marcio Roberto |
author_role |
author |
author2 |
Piccoli, Marcio Roberto |
author2_role |
author |
dc.contributor.author.fl_str_mv |
Cunha, Paulo Roberto da Piccoli, Marcio Roberto |
dc.subject.por.fl_str_mv |
board interlocking board of directors earnings management degree centrality intermediation centrality board interlocking conselho de administração gerenciamento de resultados centralidade de grau centralidade de intermediação |
topic |
board interlocking board of directors earnings management degree centrality intermediation centrality board interlocking conselho de administração gerenciamento de resultados centralidade de grau centralidade de intermediação |
description |
The participation of directors on more than one board is called “board interlocking”. This phenomenon contributes to the spread of management and governance practices, through directors sharing their knowledge and experiences on other boards. Thus, directors could “carry” the earnings management practices present in one company into another in which they sit on the board. It is assumed that the greater directors’ direct or indirect connections on boards, the greater the sharing of information, especially information that can be reflected in company earnings quality. In light of the above, the aim of this study is to verify the influence of board interlocking on earnings management in companies listed on the São Paulo Stock, Commodities, and Futures Exchange (BM&FBovespa). The study is characterized as descriptive, quantitative, and documentary, and uses a sample of companies listed on the BM&FBOVESPA between 2011 and 2013. For earnings management, the model from Kang and Sivaramakrishnan (1995) was used, while for interlocking, degree centrality measures were used for direct board member connections, and intermediation centrality for indirect connections. The results indicate that earnings management is influenced by the interlocking of board members. It is concluded that the greater the degree centrality, the greater positive earnings management is, and that variations in positive and negative accruals are influenced by board member intermediation. The results reinforce the idea that earnings management behavior can be transferred between companies by the directors that make up their boards. |
publishDate |
2017 |
dc.date.none.fl_str_mv |
2017-08-01 |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
https://www.revistas.usp.br/rcf/article/view/131270 10.1590/1808-057x201701980 |
url |
https://www.revistas.usp.br/rcf/article/view/131270 |
identifier_str_mv |
10.1590/1808-057x201701980 |
dc.language.iso.fl_str_mv |
eng por |
language |
eng por |
dc.relation.none.fl_str_mv |
https://www.revistas.usp.br/rcf/article/view/131270/127663 https://www.revistas.usp.br/rcf/article/view/131270/127664 https://www.revistas.usp.br/rcf/article/view/131270/150868 |
dc.rights.driver.fl_str_mv |
Copyright (c) 2018 Revista Contabilidade & Finanças info:eu-repo/semantics/openAccess |
rights_invalid_str_mv |
Copyright (c) 2018 Revista Contabilidade & Finanças |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf application/pdf application/xml |
dc.publisher.none.fl_str_mv |
Universidade de São Paulo. Faculdade de Economia, Administração, Contabilidade e Atuária |
publisher.none.fl_str_mv |
Universidade de São Paulo. Faculdade de Economia, Administração, Contabilidade e Atuária |
dc.source.none.fl_str_mv |
Revista Contabilidade & Finanças; v. 28 n. 74 (2017); 179-196 Revista Contabilidade & Finanças; Vol. 28 No. 74 (2017); 179-196 Revista Contabilidade & Finanças; Vol. 28 Núm. 74 (2017); 179-196 1808-057X 1519-7077 reponame:Revista Contabilidade & Finanças (Online) instname:Universidade de São Paulo (USP) instacron:USP |
instname_str |
Universidade de São Paulo (USP) |
instacron_str |
USP |
institution |
USP |
reponame_str |
Revista Contabilidade & Finanças (Online) |
collection |
Revista Contabilidade & Finanças (Online) |
repository.name.fl_str_mv |
Revista Contabilidade & Finanças (Online) - Universidade de São Paulo (USP) |
repository.mail.fl_str_mv |
recont@usp.br||recont@usp.br |
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1787713777335009280 |