Impact of board of directors attributes on real-based earnings management: further evidence from Egypt

Future Business Journal

Table 7 Governance Indicators and ABCFO: System GMM Estimation Results

Variables	ABCFO	ABCFO	ABCFO	ABCFO
L.ABCFO	− 0.155***	− 0.153***	− 0.156***	− 0.153***
L.ABCFO	(0.014)	(0.015)	(0.016)	(0.014)
BRDSIZE	0.003**
BRDSIZE	(0.001)
BRDIND		− 0.082***
BRDIND		(0.019)
CEO duality			− 0.012**
CEO duality			(0.005)
BRDMEET				− 0.005***
BRDMEET				(0.001)
ROA	0.020	0.019	0.051	0.140
ROA	(0.128)	(0.119)	(0.124)	(0.125)
ROE	0.232***	0.188***	0.263***	0.193***
ROE	(0.049)	(0.054)	(0.050)	(0.050)
Liquidity	0.014***	0.015***	0.015***	0.014***
Liquidity	(0.003)	(0.003)	(0.003)	(0.003)
Leverage	0.071*	0.086**	0.070**	0.067*
Leverage	(0.037)	(0.035)	(0.034)	(0.036)
Gear	− 0.028***	− 0.034***	− 0.022**	− 0.027**
Gear	(0.010)	(0.010)	(0.010)	(0.010)
Size	0.058***	0.040**	0.029*	0.060***
Size	(0.015)	(0.016)	(0.017)	(0.015)
Ass.Tangibility	− 0.329***	− 0.344***	− 0.308***	− 0.351***
Ass.Tangibility	(0.042)	(0.041)	(0.033)	(0.040)
OC	− 0.095***	− 0.139***	− 0.114***	− 0.072***
OC	(0.018)	(0.020)	(0.018)	(0.015)
EM.Flex	0.126***	0.158***	0.140***	0.097***
EM.Flex	(0.026)	(0.028)	(0.029)	(0.025)
Constant	0.234***	0.651***	0.508***	0.201**
Constant	(0.082)	(0.142)	(0.120)	(0.085)
Observations	702	702	702	702
Number of firms	78	78	78	78
Number of instruments	60	64	60	60
AR2 test (p-value)	0.244	0.257	0.243	0.249
Hansen test (p-value)	0.174	0.176	0.098	0.183

This table presents the results from System-GMM estimations for dynamic panel-data models. The dependent variable is the REM based on abnormal cash flow from operations model. The sample consists of 780 observations during period 2008–2017. Two-step results and Hansen J tests never reject the validity of the over-identifying restrictions. Second order autocorrelation (AR2) of residuals is always rejected. Standard errors are reported in parentheses. ***, **, and * represent significant at the 1%, 5% and 10% levels, respectively