Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat

The study investigates the existence of earnings management practices by companies listed in the KLSE. Prior studies suggest that managers manage earnings to avoid reporting losses and earnings decreases. This study tests the effects of size and code of corporate governance on the incidence of manag...

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Main Authors:	Mohd Iskandar, Takiah, Rahmat, Mohd Mohid
Format:	Article
Language:	English
Published:	Accounting Research Institute (ARI) & Faculty of Accountancy 2005
Subjects:	Malaysia Kuala Lumpur. KLSE
Online Access:	http://ir.uitm.edu.my/id/eprint/290/ http://ir.uitm.edu.my/id/eprint/290/1/AJ_NORMAN%20MOHD%20SALEH%20MAR%2005.pdf

id	uitm-290
recordtype	eprints
spelling	uitm-2902019-03-25T08:00:19Z http://ir.uitm.edu.my/id/eprint/290/ Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat Mohd Iskandar, Takiah Rahmat, Mohd Mohid Malaysia Kuala Lumpur. KLSE The study investigates the existence of earnings management practices by companies listed in the KLSE. Prior studies suggest that managers manage earnings to avoid reporting losses and earnings decreases. This study tests the effects of size and code of corporate governance on the incidence of managing earnings to avoid reporting earnings decrease and losses by Malaysian companies. Using the discontinuity test and level of smoothness test around zero reported earnings, this study finds a significant incidence of companies reporting positive earnings while avoiding showing losses. This finding is consistent with that of previous studies. The study also provides evidence that earnings management practices were reduced following the introduction of a code of corporate governance by the Malaysian government in 2001. Accounting Research Institute (ARI) & Faculty of Accountancy 2005-07 Article PeerReviewed text en http://ir.uitm.edu.my/id/eprint/290/1/AJ_NORMAN%20MOHD%20SALEH%20MAR%2005.pdf Mohd Iskandar, Takiah and Rahmat, Mohd Mohid (2005) Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat. Malaysian Accounting Review, 4 (1). pp. 25-37. ISSN 1675-4077
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
language	English
topic	Malaysia Kuala Lumpur. KLSE
spellingShingle	Malaysia Kuala Lumpur. KLSE Mohd Iskandar, Takiah Rahmat, Mohd Mohid Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat
description	The study investigates the existence of earnings management practices by companies listed in the KLSE. Prior studies suggest that managers manage earnings to avoid reporting losses and earnings decreases. This study tests the effects of size and code of corporate governance on the incidence of managing earnings to avoid reporting earnings decrease and losses by Malaysian companies. Using the discontinuity test and level of smoothness test around zero reported earnings, this study finds a significant incidence of companies reporting positive earnings while avoiding showing losses. This finding is consistent with that of previous studies. The study also provides evidence that earnings management practices were reduced following the introduction of a code of corporate governance by the Malaysian government in 2001.
format	Article
author	Mohd Iskandar, Takiah Rahmat, Mohd Mohid
author_facet	Mohd Iskandar, Takiah Rahmat, Mohd Mohid
author_sort	Mohd Iskandar, Takiah
title	Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat
title_short	Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat
title_full	Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat
title_fullStr	Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat
title_full_unstemmed	Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat
title_sort	avoidance of reported earnings decreases and losses: evidence from malaysia / norman mohd saleh, takiah mohd iskandar and mohd mohid rahmat
publisher	Accounting Research Institute (ARI) & Faculty of Accountancy
publishDate	2005
url	http://ir.uitm.edu.my/id/eprint/290/ http://ir.uitm.edu.my/id/eprint/290/1/AJ_NORMAN%20MOHD%20SALEH%20MAR%2005.pdf
first_indexed	2023-09-18T22:44:23Z
last_indexed	2023-09-18T22:44:23Z
_version_	1777417126804455424

Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat

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