Abstract:

This study evaluates the effectiveness of the 2008 Moroccan Governance Code by analyzing the impact of board characteristics on earnings management practices among firms listed on the Casablanca Stock Exchange from 2018 to 2022. Using the Generalized Method of Moments (GMM) on a sample of 34 companies, the results indicate that boards with a majority of independent directors, chaired by a Moroccan national, and featuring balanced gender representation are associated with reduced earnings management. These findings underscore the Governance Code’s efficacy in curbing opportunistic practices. Our research contributes to the corporate governance literature by highlighting the role of board independence and the chairman’s nationality in constraining earnings management, consistent with the principles of the 2008 Moroccan Governance Code. In the African context—characterized by emerging financial markets, economic volatility, and evolving regulatory frameworks—these insights hold particular relevance, especially post-COVID-19, as they advocate for more transparent, sustainable, and resilient governance. This study advances perspectives on corporate governance in emerging markets, particularly North Africa, and proposes avenues for future research in similar regional contexts