Influence of operational levels of corporate governance on earnings management in companies listed on B3

Abstract

Purpose: To analyze the influence of operational levels of corporate governance on earnings management in companies listed on B3. Methodology: Descriptive research with a documentary procedure and a quantitative approach was adopted. The sample consisted of 207 companies listed on B3, which are classified in the operational levels of corporate governance. Data were collected through Economática® from 2013 to 2018 and, subsequently, the model developed by Kang and Sivaramakrishnan (1995) was used. To estimate the result management, the software SPSS, LhStat and Excel were used. Results: The results show that in the result management aspect there is not a trend or an evolutionary line, that the segments which require higher corporate governance standards, companies have accounting choices to manage less results, or, that in the segments with lower corporate governance requirements, companies have accounting choices to manage more results. After all, the operational levels that have the best corporate governance concepts, do not negatively influence the practice of earnings management, as well as, the operational levels that do not have the best concepts, do not positively influence the earnings management practice. Contributions of the Study: The study brought contributions to the corporate sphere, addressing the promotion of governance as a mechanism for transparency in companies accountability in the aspect of earnings management. This allows users to infer the quality of accounting information disclosed by B3. Likewise, contributions in the academic sphere when analyzing accounting choices directly from companies' accounting statements, bringing the theory discussed in the academy closer to the associations reality.

Keywords

• accounting choices; earnings management; corporate governance, operational levels..