The Impact of Non Executive Directors Fees, Board Meeting Frequency and Non Executive Directors Meeting Frequency on Earnings Management

This paper investigates whether the extent of opportunistic earnings management (measured by discretionary accruals) is related to non executive directors’ commitment. Based on a sample of UK companies, we find that non executive directors’ commitment is an important factors in constraining the inclination of managers to engage in earnings management which support the argument that not only the independence of directors but also their commitment that reduces earnings management. Our findings have implications for stakeholders and policymakers in that we find non executive directors’ remuneration is an important mechanism of corporate governance. This result criticizes the loose chairman independence criteria recommended by the code. Keywords: .