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

Future Business Journal

Table 9 Governance Indicators and ABDISX: System GMM Estimation Results

Variables	ABDISX	ABDISX	ABDISX	ABDISX
L. ABDISX	− 0.155***	− 0.164***	− 0.162***	− 0.137***
L. ABDISX	(0.008)	(0.018)	(0.013)	(0.009)
BRDSIZE	− 0.000
BRDSIZE	(0.001)
BRDIND		0.099***
BRDIND		(0.027)
CEO duality			− 0.041***
CEO duality			(0.015)
BRDMEET				0.001
BRDMEET				(0.001)
ROA	0.162***	0.183**	0.117	0.131**
ROA	(0.058)	(0.079)	(0.083)	(0.058)
ROE	− 0.065**	− 0.064*	− 0.038	− 0.052*
ROE	(0.029)	(0.036)	(0.038)	(0.028)
Liquidity	− 0.001	− 0.000	− 0.000	− 0.000
Liquidity	(0.001)	(0.001)	(0.002)	(0.001)
Leverage	0.004	− 0.009	− 0.010	− 0.004
Leverage	(0.010)	(0.016)	(0.011)	(0.010)
Gear	− 0.008**	− 0.001	− 0.007	− 0.004
Gear	(0.003)	(0.005)	(0.005)	(0.003)
Size	− 0.004	0.004	− 0.004	− 0.002
Size	(0.005)	(0.007)	(0.006)	(0.005)
Ass.Tangibility	− 0.004	0.030	− 0.013	− 0.003
Ass.Tangibility	(0.016)	(0.021)	(0.013)	(0.018)
OC	0.081***	0.104***	0.063***	0.084***
OC	(0.016)	(0.017)	(0.021)	(0.018)
EM.Flex	− 0.024*	− 0.053***	− 0.011	− 0.024*
EM.Flex	(0.012)	(0.015)	(0.017)	(0.014)
Constant	− 0.351***	− 0.592***	− 0.229*	− 0.395***
Constant	(0.090)	(0.095)	(0.119)	(0.099)
Observations	702	702	702	702
Number of firms	78	78	78	78
Number of instruments	33	33	32	32
AR2 test (p-value)	0.245	0.246	0.246	0.230
Hansen test (p-value)	0.143	0.098	0.099	0.113

This table presents the results from System-GMM estimations for dynamic panel-data models. The dependent variable is the REM based on abnormal discretionary expenditure 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