Lisboa, InêsCosta, Alexandra2021-07-282021-07-282020Lisboa I., Costa A. (2020) The Impact of Corporate Governance on Earnings Management of Portuguese Listed Firms. In: Crowther D., Seifi S. (eds) Governance and Sustainability. Approaches to Global Sustainability, Markets, and Governance. Springer, Singapore. https://doi.org/10.1007/978-981-15-6370-6_5978-981-15-6369-0978-981-15-6370-6http://hdl.handle.net/10400.8/5953This work aims to analyze the impact of corporate governance characteristics on earnings management of Portuguese non-financial listed firms, for the period 2012–2016. Using panel data, we regress discretionary accruals, a proxy of earnings management, against corporate governance characteristics and control variables. The main results show that only two corporate governance variables: the independence of the board of directors and the type of corporate governance model adopted (one-tier or two-tier), and one control variable: level of indebtedness, are relevant to explain firm’s earnings management. Results show that discretionary accruals increase with the independence of the board of directors. Moreover, companies who adopt the two-tier model are less prone to increase accruals due to a greater separation of functions and supervision and an increase in the monitorization of opportunistic behaviors. Finally, this study provides evidence that a high level of indebtedness is a deterrent to earning management practices since creditors also monitor the company’s financial situation.engCorporate governanceEarnings managementAccruals TransparencyPortugalbook parthttps://doi.org/10.1007/978-981-15-6370-6_5