Has the board been effective enough to look after the earnings manipulation exercise?

This study generally aims to see how effectively the board monitors the earnings manipulation activity. Thus, this study examines the relationship between board characteristics (board independence, meeting, size, and CEO duality)on earnings manipulation activity. Earnings manipulation is measured by using the Beneish profit model. This study obtained data from 372 public listed companies in Malaysia from 2010 to 2013. The result of this study finds that board independence, board meeting, and board size have negative and significant relationships with earnings manipulation. The results imply that more independent directors, more frequent board meeting, and greater board size could reduce the tendency of earnings manipulation.