Abstract: Purpose: This research aims to study the impact of board characteristics on earnings management in industrial companies listed on the Palestine Stock Exchange. The study focused on the board characteristics such as independence, educational level of members, number of meetings, diversity, and board size, to analyze their effect on earnings management practices. Methodology: The study employed multiple regression analysis to examine the relationship between these variables and earnings management. Findings: The results showed a negative relationship between board independence and earnings management, indicating that increased member independence reduces earnings manipulation. The study also found a negative relationship between the educational level of board members and earnings management, with members who have higher education levels tending to enhance transparency and adherence to financial standards. Additionally, the results confirmed that an increase in the number of board meetings reduces earnings management, as this contributes to enhancing ongoing oversight. Meanwhile, the results indicated no relationship between board diversity or board size and earnings management, suggesting that these characteristics may not be critical in influencing earnings manipulation practices. Recommendations: Based on these findings, the study provided important recommendations for investors and decision-makers regarding the enhancement of board independence, raising the educational level of its members, and increasing the number of meetings to limit earnings management practices. Furthermore, this study opened the door for future research to expand the analysis to include different sectors and markets, as well as to explore other institutional and cultural factors that may affect earnings management.

Title

An-Najah University Journal for Law and Economics

Publisher

An-Najah National University

Publisher Country

Palestine

Publication Type

Both (Printed and Online)

Volume

1

Year

2025

Pages

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