Abstract

Purpose: Joint board management meetings bring boards of directors and top management teams together to share information and discuss company matters. The authors investigate whether these joint meetings are associated with higher agency costs or information sharing benefits in the context of firm earnings management. Design/methodology/approach: Using publicly disclosed data on the frequency of joint board management meetings in Indonesian firms, the authors examine the relationship between joint board management meetings and earnings management during 2010–2017. Findings: The authors find that more joint board management meetings are associated with lower earnings management. This is consistent with joint board management meetings providing net information sharing benefits. Additional testing indicates that the results are the strongest when firms hold more joint board management meetings than regular board meetings. Originality/value: The findings suggest that in addition to holding regular board and audit committee meetings, formal meetings between boards of directors and top management teams are beneficial to shareholders by restricting opportunistic accounting choices by firm management.

Original languageEnglish
Pages (from-to)540-558
Number of pages19
JournalAsian Review of Accounting
Volume30
Issue number4
DOIs
Publication statusPublished - 20 Oct 2022

Keywords

  • Board of directors
  • Corporate governance
  • Earnings management
  • Management
  • Meetings

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