English abstract
This study examines the effect of royal board members on earnings management. The sample data on nonfinancial listed companies in Gulf Cooperation Council countries (GCC) are hand-collected from Capital IQ and annual reports. The sample data cover the period from 2010 to 2013. We conduct an OLS test on six countries as one aggregate population and individually. The results are mixed. We find no relation between royal family directors and earnings management in Bahrain, Oman, Qatar, and the United Arab Emirates. However, a statistically significant and positive relation exists between royal family directors and earnings management in the Saudi Arabia. But, a statistically significant and negative relation exists between royal family directors and earnings management in Kuwait.
