Purpose – This study aims to test empirically the relationship between board equity ownership and corporate governance on earnings quality of for‐profit corporations, to help practitioners enhance corporate governance practices. Design/methodology/approach – The study examines two...

There is evidence that insiders can overcome monitoring mechanisms and report low quality earnings, even in firms that meet the new legislative and exchange standards for governance. We show that earnings quality is directly affected by entrenched board members and that both independent and...