In this study, we document that independent corporate boards of Hong Kong firms provide effective monitoring of earnings management, which suggests that despite differences in institutional environments, corporate board independence is important to ensure high quality financial reporting. The...

When we examine all firms in the sample we find that short-term debt is positively associated with earnings management consistent with some prior studies and the debt hypothesis. However, when we focus on high creditworthy (investment grade) firms we find a negative relation between short-term...