M.A. Thesis:

Features of the board and smoothing

This study was conducted with the aim of investigating the impact of the board features on earnings smoothing in the companies listed in Tehran Stock Exchange. Based on the method of data collection, this research is a descriptive-regression study and of a causal and post-event type. Also, it is an applied study in terms of purpose. In order to achieve the research objective, 5 hypotheses have been proposed which examine the effect of the variables of CEO duality, board size, board independence, ownership percentage of board members and expertise of board members on earnings smoothing. To test the research hypotheses, the data of a sample of 93 companies was evaluated. The sample was selected through systematic elimination of the statistical population. Then, the sample size was determined using Cochran formula. The results of hypothesis testing demonstrated that hypotheses 1 to 4 indicating the relationship between the variables of CEO duality, board size, board independence and ownership percentage of board members with earnings smoothing are confirmed. But the fifth hypothesis suggesting the significant relationship between the expertise of board members and earnings smoothing was rejected. That is, in this study, expertise of board members does not affect earnings smoothing.

Keywords: Earnings smoothing, CEO duality, board size, board independence, ownership percentage of board