The dominance of directors, audit committee effectiveness and accounting conservatism: Malaysian evidence / Mohd Shatari Abd Ghafar

This study uses the alignment effect hypothesis from agency theory and the entrenchment hypothesis to examine the firms’ financial reporting conservatism relative to the effectiveness of their audit committees and the dominance of directors. The study is also extended to determine the association of...

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Main Author:	Abd Ghafar, Mohd Shatari
Format:	Book Section
Language:	English
Published:	Institute of Graduate Studies, UiTM 2012
Subjects:	Accounting. Bookkeeping Malaysia
Online Access:	http://ir.uitm.edu.my/id/eprint/19193/ http://ir.uitm.edu.my/id/eprint/19193/1/ABS_MOHD%20SHATARI%20ABD%20GHAFAR%20TDRA%20VOL%202%20IGS%2012.pdf

id	uitm-19193
recordtype	eprints
spelling	uitm-191932018-06-12T01:58:06Z http://ir.uitm.edu.my/id/eprint/19193/ The dominance of directors, audit committee effectiveness and accounting conservatism: Malaysian evidence / Mohd Shatari Abd Ghafar Abd Ghafar, Mohd Shatari Accounting. Bookkeeping Malaysia This study uses the alignment effect hypothesis from agency theory and the entrenchment hypothesis to examine the firms’ financial reporting conservatism relative to the effectiveness of their audit committees and the dominance of directors. The study is also extended to determine the association of audit committee effectiveness and directors’ dominance and their linkage to the firms’ degree of accounting conservatism. The proxy for audit committee effectiveness in this study are audit committee independence, accounting financial expertise and diligence. Meanwhile, the proxies for directors’ dominance are executive director’s dominance, family director’s dominance and audit committee shareholding. Using Khan and Watts’s (2009) C_SCORE measures of accounting conservatism, the C_SCORE of 795 firms-year observation from Bursa Malaysia main board is calculated. The findings reveal that only professional accounting expertise and audit committee diligence are significant to explain the variations in the firms’ financial reporting conservatism. The results also suggest that executive ownership and CEO duality are detrimental to firms’ degree of accounting conservatism. Institute of Graduate Studies, UiTM 2012 Book Section PeerReviewed text en http://ir.uitm.edu.my/id/eprint/19193/1/ABS_MOHD%20SHATARI%20ABD%20GHAFAR%20TDRA%20VOL%202%20IGS%2012.pdf Abd Ghafar, Mohd Shatari (2012) The dominance of directors, audit committee effectiveness and accounting conservatism: Malaysian evidence / Mohd Shatari Abd Ghafar. In: The Doctoral Research Abstracts. IPSis Biannual Publication, 2 (2). Institute of Graduate Studies, UiTM, Shah Alam.
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Accounting. Bookkeeping Malaysia
spellingShingle	Accounting. Bookkeeping Malaysia Abd Ghafar, Mohd Shatari The dominance of directors, audit committee effectiveness and accounting conservatism: Malaysian evidence / Mohd Shatari Abd Ghafar
description	This study uses the alignment effect hypothesis from agency theory and the entrenchment hypothesis to examine the firms’ financial reporting conservatism relative to the effectiveness of their audit committees and the dominance of directors. The study is also extended to determine the association of audit committee effectiveness and directors’ dominance and their linkage to the firms’ degree of accounting conservatism. The proxy for audit committee effectiveness in this study are audit committee independence, accounting financial expertise and diligence. Meanwhile, the proxies for directors’ dominance are executive director’s dominance, family director’s dominance and audit committee shareholding. Using Khan and Watts’s (2009) C_SCORE measures of accounting conservatism, the C_SCORE of 795 firms-year observation from Bursa Malaysia main board is calculated. The findings reveal that only professional accounting expertise and audit committee diligence are significant to explain the variations in the firms’ financial reporting conservatism. The results also suggest that executive ownership and CEO duality are detrimental to firms’ degree of accounting conservatism.
format	Book Section
author	Abd Ghafar, Mohd Shatari
author_facet	Abd Ghafar, Mohd Shatari
author_sort	Abd Ghafar, Mohd Shatari
title	The dominance of directors, audit committee effectiveness and accounting conservatism: Malaysian evidence / Mohd Shatari Abd Ghafar
title_short	The dominance of directors, audit committee effectiveness and accounting conservatism: Malaysian evidence / Mohd Shatari Abd Ghafar
title_full	The dominance of directors, audit committee effectiveness and accounting conservatism: Malaysian evidence / Mohd Shatari Abd Ghafar
title_fullStr	The dominance of directors, audit committee effectiveness and accounting conservatism: Malaysian evidence / Mohd Shatari Abd Ghafar
title_full_unstemmed	The dominance of directors, audit committee effectiveness and accounting conservatism: Malaysian evidence / Mohd Shatari Abd Ghafar
title_sort	dominance of directors, audit committee effectiveness and accounting conservatism: malaysian evidence / mohd shatari abd ghafar
publisher	Institute of Graduate Studies, UiTM
publishDate	2012
url	http://ir.uitm.edu.my/id/eprint/19193/ http://ir.uitm.edu.my/id/eprint/19193/1/ABS_MOHD%20SHATARI%20ABD%20GHAFAR%20TDRA%20VOL%202%20IGS%2012.pdf
first_indexed	2023-09-18T23:02:03Z
last_indexed	2023-09-18T23:02:03Z
_version_	1777418237920673792

The dominance of directors, audit committee effectiveness and accounting conservatism: Malaysian evidence / Mohd Shatari Abd Ghafar

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