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The objective of this study is to investigate the relationship between corporate governance (CG) and earnings management (EM) of Thai listed companies. The study quantifies EM by measuring abnormal accruals of the companies. The findings from regression analyses show that, overall, CG has no relationship with EM. However, the findings from analyses sample with positive abnormal accruals (income-increasing EM) and negative abnormal accruals (income-decreasing EM) separately show that CG has a negatively significant relationship with positive abnormal accruals but has no significant relationship with negative abnormal accruals. In sum, the findings from the study suggest that CG could constrain income-increasing EM.
Keywords: 1) Corporate Governance 2) Earnings Management 3) Abnormal Accruals
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