The influence of board of directors characteristics on earnings management among listed companies in China

Purpose This study aims to examine the impact of board of directors (BOD) characteristics on earnings management in listed companies in China. Design/methodology/approach This study aims to reveal the influence of board of directors characteristics on earnings management. Based on 3,112 listed companies on the Shanghai and Shenzhen Stock Exchanges from 2018 to 2022, the fixed effects regression model is conducted through the balanced panel data of 15,560 observations to test the hypotheses. Findings Result shows that board size, director’s financial background and independent directors are negatively associated with earnings management, no significant impact of female directors and chief executive officer (CEO) duality and positive relationship between foreign director and earnings management. Originality/value Limited research on the relationship between BOD characteristics and accruals based on the world’s second-largest economy, especially on the impact of foreign directors in the China market. The result provides a comprehensive analysis on relationship between 6 different BOD characteristics and earnings management, contributes to regulators to enhance the monitoring role and implies in firms establishing better performing boards.