Özet:

Purpose: The purpose of this paper is to investigate the efficiency of corporate governance characteristics in reducing earnings management among the listed firms in Bangladesh. Design/methodology/approach: The sample in this study consists of the top 200 non-financial companies listed on the Bangladesh Stock Exchange for the period from 2013 to 2017. We used modified Jones Model in order to calculate discretionary accruals (DAC). Findings: The results of this study document significant relationship between proposed corporate governance factors and likelihood of decreasing earning management. This study also finds that corporate governance is an endogenously determined characteristic that has no causal impact on firm performance when conditioning on fraud. Fraud is a significant regulatory event but its overall economic impact at the firm level is highly variable. Originality: Corporate governance is the system of rules, practices and processes by which a firm is directed and controlled. Corporate governance essentially involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government and the community. Since corporate governance also provides the framework for attaining a company's objectives, it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure. To date, however there is no a single work exploring the efficacy of corporate governance to reducing the opportunistic factors arising earning management in Bangladesh. In this viewpoint, then the current study tries to fill such void research agendas.

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