Audit Committee Characteristics and Earnings Management: Evidence from Jordan

Abstract

This study investigates whether earnings management is influenced by the audit committee characteristics. This study uses a secondary-data and the population study's consists of all industrial firms listed on Amman Stock Exchange (ASE) over the period 2009-2013. Using a random effect panel data model, the results reveal that audit committee independence and audit committee financial expertise are negatively associated with earnings management at significant level. Moreover, the results indicate that a significant relationship between audit committee size and earnings management but positive direction. These results have implications for policy makers and regulatory bodies in Jordan since they highlight the need to improve the good corporate governance practices and attempt to constrain the incidence of earnings management in Jordanian firms.