Monitoring of earnings management by independent directors and the impact of regulation: evidence from the People's Republic of China
Why this work is in the frame
A frame that forgets how it found something cannot be audited. These are the routes that admitted this work.
Bibliographic record
Abstract
Alarmed by escalating volatility in international financial markets and the uncovering of numerous accounting scandals, national regulators worldwide responded by introducing new regulations on corporate governance. To shed light on the debate over the merit of such regulations, this study examines the effectiveness of independent directors in constraining earnings management behaviour in the PRC around the time when the Chinese regulators issued a mandate requiring minimum representation of independent directors in listed firms. The results show that while board independence significantly reduces earnings management when adoption of independent directors is voluntary, a higher degree of board independence is not associated with lower earnings management when adoption of independent directors is made mandatory. This suggests that board independence could be effective in monitoring earnings management even in an institutional environment like that of the PRC, but regulation could distort conditions in the market of independent directors, which renders such governance mechanism ineffective.
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Full frame distilled prediction
Teacher imitationNot calibrated prevalence, not ground truth. Human validation pending. Learned from the 10,348 direct Codex labels and 10,348 direct Gemma labels. Candidate is the union of thresholded teacher heads; consensus is their intersection. These outputs are machine_predicted_unvalidated and are not human labels or direct frontier model labels.
Codex and Gemma teacher scores by category
| Category | Codex | Gemma |
|---|---|---|
| Metaresearch | 0.003 | 0.001 |
| Meta-epidemiology (narrow) | 0.000 | 0.000 |
| Meta-epidemiology (broad) | 0.000 | 0.000 |
| Bibliometrics | 0.000 | 0.000 |
| Science and technology studies | 0.000 | 0.000 |
| Scholarly communication | 0.000 | 0.001 |
| Open science | 0.000 | 0.000 |
| Research integrity | 0.000 | 0.000 |
| Insufficient payload (model declined to judge) | 0.000 | 0.000 |
Machine scores (provisional)
The two teacher heads of the student model, read on this work. A score orders the frame for review; it never asserts a category, and the validation status ships verbatim with every row.
Baseline scores from an immature model (maturity gate not passed, 7 training rounds). Scores rank; they never assert a category.
score_only:v0-immature-baseline · verbatim from the scoring run: score_only means the number may rank works, and no category label ships from it