Abstract:

This paper examines the effect of corporate governance (audit committee) on real earning management among the Jordanian firms listed on the Amman stock exchange. Wherein, the sample was 92 firms from the industrial and service companies from the period 2009 to 2018. Corporate governance examined through the audit committee size, audit committee meetings, audit committee gender, whereas real earning management has been quantified using cash flow from operations. In the present study formed by agency theory and using the panel data method. The results demonstrate that the audit committee size, audit committee gender have a negative and significant relationship with real earning management. While the relationship between audit committee meetings and real earning management is significantly positive. This study offers empirical evidence to assist executives, stakeholders in their decision. consequently, these findings provide evidence for the executives, investors, and regulators in Jordan.