Governança Corporativa

This paper aims to investigate whether corporate governance best practices avoid earnings management. After brief literature review of the main concepts of corporate governance and its relation with earnings management, an empirical study with listed companies in Brazil was implemented covering 2003 and 2004. As an empirical proxy of earnings management it was computed the discretionary accruals running Jones model (1991). The findings reveal that companies in the new market, level 1 and level 2 from Bovespa have less variability of discretionary accruals as compared to companies that did not adhere to the program