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
Volume
V
Issue
I