September 10, 2025Journal of Finance and AccountingOpen Access

Audit Committee Effectiveness and Real Earnings Management: The Moderating Role of Financial Leverage on Non-financial Companies Listed on the Nairobi Securities Exchange

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Strong audit committee effectiveness significantly reduces real earnings management, indicating better financial oversight.
Higher financial leverage weakens the impact of audit committee effectiveness on earnings manipulation, complicating governance.
The study utilizes a panel data methodology, analyzing 416 firm-year observations from 26 companies listed on the Nairobi Securities Exchange.
Investigating the relationship underlines the importance of managing financial debts to enhance corporate governance and transparency.

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Implication

Research investigates the impact of audit committee effectiveness on earnings management in non-financial companies, suggesting financial leverage alters this relationship.

Cite This Study

Waley et al. (2025) studied this question.

synapsesocial.com/papers/68c2409bb210217d6479bb79 https://doi.org/10.11648/j.jfa.20251304.15

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Implication

Research investigates the impact of audit committee effectiveness on earnings management in non-financial companies, suggesting financial leverage alters this relationship.

Audit Committee Effectiveness and Real Earnings Management: The Moderating Role of Financial Leverage on Non-financial Companies Listed on the Nairobi Securities Exchange

Key Points

Discussion

Implication

Cite This Study

Audit Committee Effectiveness and Real Earnings Management: The Moderating Role of Financial Leverage on Non-financial Companies Listed on the Nairobi Securities Exchange

Key Points

Discussion

Implication

Cite This Study

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