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

Future Business Journal

Table 8 Governance Indicators and ABPROD: System GMM Estimation Result

Variables	(1)	(2)	(3)	(4)
Variables	ABPROD	ABPROD	ABPROD	ABPROD
L. ABPROD	0.117***	0.125***	0.122***	0.163***
L. ABPROD	(0.036)	(0.036)	(0.036)	(0.037)
BRDSIZE	− 0.004*
BRDSIZE	(0.002)
BRDIND		− 0.032***
BRDIND		(0.011)
CEO duality			0.007
CEO duality			(0.007)
BRDMEET				0.005***
BRDMEET				(0.002)
ROA	− 0.744***	− 0.801***	− 0.782***	− 0.894***
ROA	(0.203)	(0.201)	(0.200)	(0.189)
ROE	0.247***	0.257***	0.256***	0.295***
ROE	(0.074)	(0.073)	(0.071)	(0.068)
Liquidity	− 0.001	− 0.001	− 0.001	0.002
Liquidity	(0.004)	(0.004)	(0.004)	(0.004)
Leverage	− 0.232***	− 0.222***	− 0.223***	− 0.188***
Leverage	(0.040)	(0.035)	(0.042)	(0.037)
Gear	0.083***	0.078***	0.081***	0.077***
Gear	(0.012)	(0.008)	(0.009)	(0.008)
Size	− 0.014	− 0.011	− 0.017	− 0.008
Size	(0.012)	(0.013)	(0.012)	(0.012)
Ass.Tangibility	0.148***	0.127***	0.144***	0.108**
Ass.Tangibility	(0.051)	(0.048)	(0.048)	(0.043)
OC	0.067**	0.055**	0.053*	0.055**
OC	(0.027)	(0.027)	(0.028)	(0.027)
EM.Flex	0.287***	0.302***	0.311***	0.291***
EM.Flex	(0.055)	(0.054)	(0.051)	(0.055)
Constant	− 0.278*	− 0.243	− 0.239	− 0.357**
Constant	(0.155)	(0.152)	(0.152)	(0.154)
Observations	702	702	702	702
Number of firms	78	78	78	78
Number of instruments	60	61	61	61
AR2 test (p-value)	0.425	0.425	0.446	0.327
Hansen test (p-value)	0.326	0.525	0.445	0.633

This table presents the results from System-GMM estimations for dynamic panel-data models. The dependent variable is the REM based on abnormal production cost 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. *, **, *** significance levels at the 10%, 5% and 1% levels respectively