Independent boards and quality auditors reduce earnings manipulation in UK
The article explores how corporate governance practices and audit quality impact earnings management in the UK. The researchers looked at data from top UK companies between 2005 and 2008. They found that having independent non-executive directors on the board leads to better audit quality. Also, having higher quality auditors helps reduce earnings manipulation. Overall, the study suggests that independent boards and high-quality auditors play a crucial role in improving financial reporting quality.