Detailed adopt such corporate governance practices that

Detailed Study Plan


I will pursue my PhD in ________ in
University_______.  Throughout my PhD
tenure my study and research will focused on “Assessment of Corporate
Governance in significance of Earning Management Practices adopted by MNCs
operating in China”.  The adjustment of companies report
about financial position by internal management either to manipulate different
stakeholders or to control contractual results, it is more reliable if they are
influenced by good corporate governance practice (wang and Gulzar, 2011).  Earning management is desperate fraud, it
engage the collection of accounting structure and approximation that match to
GAAP.  Every corporation has earning
management would be obvious under the limits of accepted accounting regulations
manipulation. (Rehman and Ali 2007).  If firm
adopt earning management practice, it does not prove to reveal true and fair
view of organization, it may cause for other stakeholders for wrong judgment
about investment.  Effective corporate
governance is valuable for organization for earning management if manipulations
about financial news are high.  

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Corporate governance describes as the system by which
organizational setting is directed and controlled (Kajola, Sunday O,
2008).  Corporate governance is division
of privileges and duties among managerial setting in firms i.e. the board,
mangers, owners and other stakeholders, and brings out the rules and
regulations for decision making on firm affairs.

Agency problem arises when managerial authorities mislead
financial information and investors rely on, organizations have to adopt such
corporate governance practices that protect investor rights.  Many research papers have been published over
the last decade to observe a relation between corporate governance and earning
management in different countries.  A
distinctive feature of this study is to explore empirical correlation between
corporate governance and earning management. 

a part of this research, there is overall assessment of literature to signify
range of factors that contribute corporate governance.  Due to recent financial Scandals i.e. Enron
or Xerox and Woldcom corporate governance has gained its importance towards
enhancing and implementing practices of corporate governance to struggle
against opportunistic attitude that have diluted investors’ trust in financial


Research Objective

The main objective for the study is to sort out the influence
of corporate governance on earning management.

Research Question

This study concentrates on what is role of corporate
governance on earning management of MNCs operating in China?

Significance of study

This research will beneficial for MNCs operating in China to
understand the role of corporate governance on earning management which is
helpful to reduce agency problems from organizations.  There is another benefit in favor of
international investors in China that effective corporate governance enable
firms to manage earning effectively that improve their trust on financial