Abstract

This research examined the effects of corporate governance variables (foreign ownership, managerial ownership) on earnings multiples (FFP), and also the ability to earn management to mediate the relationship between corporate governance variables and earnings multiples. In this study, foreign ownership and managerial ownership are independent variables, earnings multiples (developed through PCA method from ROA, ROE and share price) is dependent variable and earnings management is mediating variable. All the relationship between dependent, independent and mediating variables are postulate on renowned agency theory. We estimate the dependent variable, i.e. earnings multiples (developed through PCA method from ROA, ROE and share price) while earning management is measured through modified Jones model, while rest of the data for CG variables are collected from the annual reports of the companies included in the sample. While financial data of earnings multiples and earning, management extracted from DataStream for the corresponding periods.

Authors

1-Muhammad Anees Khan
Senior Assistant Professor, Department of Management Studies, Bahria University, Islamabad, Pakistan.

2-Aftab Haider
Senior Assistant Professor, Department of Management Studies, Bahria University, Islamabad, Pakistan.

3-Nida Aman
Assistant Professor, Department of Management Studies, Bahria University, Islamabad, Pakistan.

Keywords

Foreign Ownership, Managerial Ownership, Earnings Multiples

DOI Number

10.31703/ger.2020(V-I).22

Page Nos

266-275