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FEB.2012 Vol-02,Issue-02 ZENITH INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY RESEARCH ISSN ONLINE: 2231-5780 VOL.2-ISSUE- 2 FEB. 2012 GUEST EDITOR DR. HARSH SADAWARTI PROFESSOR & DIRECTOR RIMT-Institute of Engineering & Technology Mandi Gobindgarh India ZENITH International Journal of Multidisciplinary Research Vol.2 Issue 2, February 2012, ISSN 2231 5780 ZENITH INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY RESEARCH Vol.2 Issue 2; February 2012; ISSN 2231-5780 SR. PAGE CONTENTS NO. NO. THE EFFECT OF AUDIT COMMITTEE CHARACTERISTICS ON REAL ACTIVITIES MANIPULATION IN THE TUNISIAN 1. CONTEXT 1-15 ZGARNI INAAM, HLIOUI KHMOUSSI, ZEHRI FATMA AUCTION OF PLAYERS IN INDIAN PREMIER LEAGUE: THE STRATEGIC PERSPECTIVE 2. 16-36 SONALI BHATTACHARYA, SHUBHASHEESH BHATTACHARYA THE EFFECT OF BLOCKHOLDERS ON EARNINGS MANAGEMENT: THE CASE OF TUNISIAN LISTED FIRMS 3. 37-49 KHAMOUSSI HALIOUI, ABIR JERBI A STUDY ON SERVICE QUALITY AND PASSENGER SATISFACTION ON INDIAN AIRLINES 4. 50-63 R.ARCHANA, DR.M.V.SUBHA A STUDY OF ACADEMIC ANXIETY OF SPECIAL NEED’S CHILDREN IN SPECIAL REFERENCE TO HEARING 5. IMPAIRED AND LEARNING DISABLED 64-72 DR. SAMIR KUMAR LENKA, DR. RAVI KANT CARBON TRADING POTENTIALS OF BIO DIESEL- PROSPECTS AND PROBLEMS 6. 73-91 DR.MRS. DHULASI BIRUNDHA VARADARAJAN EVIDENCE ON SCALE ECONOMIES AT DISAGGREGATES 7. 92-111 SOHAIL ZAFAR QURESHI OUTREACHING MICRO FINANCE: A MULTIDIMENSIONAL MODEL FROM SHGS PERSPECTIVE 8. 112-130 NEETU ANDOTRA, POOJA, RACHITA SAMBYAL INTER-STATE COMPARISON OF FISCAL INDICATORS 9. 131-145 DR. SURESH SHANBHOGUE, TALEIGAO PLATEAU www.zenithresearch.org.in ZENITH International Journal of Multidisciplinary Research Vol.2 Issue 2, February 2012, ISSN 2231 5780 A STUDY ON IMPACT OF VISUAL MEDIA ADVERTISEMENTS ON WOMEN CONSUMERS BUYING BEHAVIOUR IN CHENNAI 10. CITY 146-171 T. RAVIKUMAR BUSINESS WOMEN IN MICRO ENTERPRISES 11. 172-180 DR.V.USHAKIRAN, MS.RAJESHWARI, MS M.V.KARUNASREE EVALUATION OF TRAINING EFFECTIVENESS: A CASE STUDY 12. 181-196 DR. TEJ SINGH, DR. RAJIV RATAN INNOVATIONS IN CLOUD COMPUTING: THE WAY AHEAD 13. 197-205 ABHISHEK PANDE SECURITY MEASURES OF HACKING AND CRIME 14. 206-213 DR.NARENDRA KUMAR, MS.SALVI RATHI PERFORMANCE EVALUATION OF AODV, DSR, DSDV AND TORA ROUTING PROTOCOLS 15. 214-221 ER. SAURABH MITTAL, PINKI A STUDY OF CUSTOMER SATISFACTION IN SPECIAL REFERENCE TO SERVICES PROVIDED BY BANKS AND POST- 16. OFFICES IN N.C.R. 222-239 DR. M. K. GUPTA, NIDHI GUPTA DATA MODELING TECHNIQUES FOR DATA WAREHOUSE 17. 240-246 MS. ALPA R. PATEL, PROF. (DR.) JAYESH M. PATEL INVENTORY MANAGEMENT OF ENGINEERING GOODS INDUSTRY IN PUNJAB: AN EMPIRICAL ANALYSISIS 18. 247-261 DR. ANITA SONI DIMENSIONALITY OF FINANCIAL REFORMS USING XBRL IN AN ORGANIZATION 19. 262-268 ABHISHEK PANDE FLOURISHING BANCASSURANCE BUSINESS: AN INDIAN PERSPECTIVE 269-280 20. S SARVANAKUMAR, U.PUNITHA, S. GUNASEKARAN, S SANKAR www.zenithresearch.org.in ZENITH International Journal of Multidisciplinary Research Vol.2 Issue 2, February 2012, ISSN 2231 5780 THE TECHNIQUES AND RATIONALE OF E- SURVEILLANCE PRACTICES IN ORGANIZATIONS 21. 281-290 DR.AISHA M.SHERIFF, MRS. GEETHA RAVISHANKAR QUALITY OF WORK LIFE, EMPLOYEE PERFORMANCE AND CAREER GROWTH OPPORTUNITIES: A LITERATURE REVIEW 22. 291-300 SHALINI SHEEL, DR BHAWNA KHOSLA SINDHWANI, SHASHANK GOEL, SUNIL PATHAK E – CORPORATE GOVERNANCE: A PROTOTYPE SHIFT IN PUBLIC SECTOR 23. 301-307 PROF. SARIKA. R. LOHANA FINANCIAL REPORTING AND CORPORATE GOVERNANCE - AN EMPIRICAL STUDY 24. 308-319 D.HEMA A COMPARATIVE STUDY OF CORPORATE GOVERNANCE DISCLOSURE BY PRIVATE AND PUBLIC SECTOR BANKS IN 25. INDIA 320-342 DR. HARMEET KAUR A RELATIVE ANALYSIS ON CUSTOMERS’ SATISFACTION OF MICROWAVE OVEN: STUDY ON SELECT COMPANIES 26. 343-356 MR RAJENDRAPRASAD. K.HANAGANDI, DR. FILIPE RODUGUESE MELO, DR. SHRINIVAS PATIL AN INVESTIGATION INTO THE EFFECTIVENESS OF OPEN BOOK EXAMINATION AND TRADITIONAL EXAMINATION 27. METHOD IN SECONDARY SCHOOLS 357-367 DR. DIVYA SHARMA RESTRUCTURING MANAGEMENT EDUCATION TODAY, FOR BETTER TOMORROW 28. 368-377 NEELAM SHEOLIHA, SUDEEP KUMAR AN APPROACH TO PROJECT MANAGEMENT— A BUSINESS NEED OF TODAY 29. 378-386 PROF. MRS. NANDINI M. DESHPANDE FINANCIAL VIABILITY OF SUGAR FACTORIES IN SOUTH GUJARAT-A CASE STUDY 30. 387-399 DR. MARTINA. R. NORONHA, PROF. DILIPSINH THAKOR www.zenithresearch.org.in ZENITH International Journal of Multidisciplinary Research Vol.2 Issue 2, February 2012, ISSN 2231 5780 A STUDY ON CAPITAL GAINS TAX FROM INTERNATIONAL PERSPECTIVE: A COMPARATIVE OVERVIEW 31. 400-409 DR.D.MAHESHWARA REDDY, K.V.N.PRASAD CASH MANAGEMENT OF MILK COOPERATIVES: A COMPARATIVE STUDY OF MILKFED AND HDDCF 32. 410-421 MANVIR KAUR WHETHER MOBILE MARKETING INCREASES THE BRAND VALUE OF A CAR 33. 422-433 MS.R.SUGANYA, MRS.S.SHANKARI A STUDY ON PSYCHOLOGICAL STRESS OF WORKING WOMEN 34. 434-445 PROF. PARUL TRIPATHI, PROF. SANDEEP BHATTACHARJEE METAPHYSICAL POETRY AND JOHN DONNE: AN OVERVIEW 35. 446-451 PIU SARKAR INTERNATIONAL HUMANITARIAN LAW AND CONCEPT OF HINDUISM 36. 452-458 GAURAV ARORA, GUNVEER KAUR, SUPRITHA PRODATURI, VINAYAK GUPTA THE IMPACT OF CHANGE ON MANAGERS-ON ACCOUNT OF ACQUISITION 37. 459-472 DR. KOMAL, VISMAY VIBHOL www.zenithresearch.org.in ZENITH International Journal of Multidisciplinary Research Vol.2 Issue 2, February 2012, ISSN 2231 5780 THE EFFECT OF AUDIT COMMITTEE CHARACTERISTICS ON REAL ACTIVITIES MANIPULATION IN THE TUNISIAN CONTEXT ZGARNI INAAM*; HLIOUI KHMOUSSI**; ZEHRI FATMA*** *Assistante contractuelle à la Faculté des Sciences Economiques et de Gestion de Mahdia. **Maître de conférences à l’Institut Supérieur d’Administration des Entreprises de Gafsa. ***Maître Assistante à la Faculté des Sciences Economiques et de Gestion de Sfax. ABSTRACT This study examines the effect of, on the one hand, audit committee characteristics on Real Earnings Management (REM) after the implementation of the Tunisian law n° 2005-96 in 2005 and, on the other hand, the adoption of the law n° 2005-96 on the reduction of the extent of REM in the Tunisian context. Using 319 firm-year observations during the period 2000-2010, we tested whether audit committee variables are significant determinants of REM; we estimated REM proxy using Roychowdhury 2006 model. Results suggest that an audit committee comprising majority independent directors reduces the extent of REM. Furthermore, we find (1) a significant association between the audit committee expertise and sales manipulation and (2) no significant relation between the audit committee expertise and overproduction after the passage of the law n° 2005-96. In addition, a negative association between the number of audit committee meetings and overproduction is shown. Moreover, we have found that the size of the audit committee is positively associated with the level of REM. Our findings suggest that adoption of the law of financial security (2005) doesn’t have any effect on REM. KEYWORDS: real earnings management, audit committee, law n° 2005-96. ______________________________________________________________________________ I. INTRODUCTION Corporate scandals and failures such as Enron, WorldCom, Xerox, etc. were highly catastrophic and had a terrible effect on stakeholders. The pressure of globalization and the intense competition have lead to organizations encouraging good corporate governance. These scandals were usually caused by the conflict of interest inherent in the relationship between the owner and managers. In this conflict, it was necessary to establish formulas for government to regulate the actions of all actors involved in companies. Furthermore, to enhance the credibility and transparency of financial information as well as contributing to greater control of managers, different codes and laws of corporate governance were issued such as the Cadbury Report in the UK, 1992; the Vienot I Report in France,1995; the SOX in U.S.A, 2002; the law of financial security n° 2005-96 in Tunisia). www.zenithresearch.org.in 1 ZENITH International Journal of Multidisciplinary Research Vol.2 Issue 2, February 2012, ISSN 2231 5780 In 2005, a new law was passed in Tunisia. The Financial System Reform Act (Law n° 2005-96 of 18 october 2005) seeks to achieve greater transparency and improve the credibility of financial information by regulating auditors independence and providing for the mandatory creation of audit committees in listed companies. This law forced all Tunisian firms, that traded on the Stock Exchange, to have an audit committee and imposed that the committee president and a majority of its members were independent. This law addresses the following governance matters: shareholder agreements, substantive and disclosure rules of corporate governance, shareholders meetings and duties of directors. Consequently, audit committee should be independent from management so as to be able to conduct effective monitoring which results in less opportunistic management behavior such as REM. This paper is aimed (1) to determine if significant associations exist between audit committee characteristics and the occurrence of REM in a relatively smaller capital market such as that of Tunisia (2) to examine the effect of the adoption of the law n° 2005-96 on the reduction of the extent of REM in the Tunisian context. The main objective of this study is to investigate the effect of audit committee characteristics (independence, financial expertise, number of meetings and size) on the reduction of the extent of REM via a decreasing of sales manipulation and overproduction. We have also focused on the impact of the law of financial security (2005) on the reduction