The purpose of this research is to investigate the moderating role of corporate governance on the relationship between earnings management and debt level in capital structure. The paper used a hypothesis-testing research approach to gather data from the annual reports of 13 industrial companies listed on Palestine Exchange and 25 Jordanian companies listed on Amman Stock Exchange from 2013 to 2020. Descriptive and inferential statistics were employed, along with correlation analysis to evaluate linear relationships between variables. The fxed and random efect regressions were utilized to develop the research model. In the case of Palestinian manufacturing frms, the results revealed that Earnings Management (EM) had a signifcant negative impact on debt level. According to the moderating role of Corporate Governance (CG), larger boards and the existence of female members on the board of directors causes an increase in the high-leverage impact of EM, whereas CEO duality mitigates the high-leverage impact. However, in the case of Jordanian manufacturing frms, EM showed an insignifcant impact on debt level. Regarding the moderating role of CG, it was proved that the presence of female members on the board of directors increased the frm’s reliance on debt fnancing as a result of EM practices, while institutional investors mitigate the efect of EM on debt fnancing, leading to a decrease in reliance on debt. The fndings of this research are suitable for the regulators while formulating policies on the Corporate Governance and the Impact of Earnings Management on Capital Structure. These fndings have guided the policymakers that they should enhance their focus on Palestine and Jordan companies to test Corporate Governance Moderates the Impact of Earnings Management on Capital Structure. This study is also helpful for the new researcher while investigating this area in the future. Keywords Capital structure · Corporate governance · Earnings management · Palestinian exchange · Amman stock exchange

العنوان

Discover Sustainability

الناشر

Springer Nature Switzerland AG

بلد الناشر

سويسرا

Indexing

Scopus

معامل التأثير

None

نوع المنشور

Both (Printed and Online)

المجلد

5

السنة

2024

الصفحات

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