Earnings management and board characteristics: evidence from Malaysia
The Malaysian Code of Corporate Governance was introduced to improve the monitoring function of the board of directors, audit committee and the external audit. This study assesses the effectiveness of some board characteristics to monitor management behavior with respect to their incentives to manag...
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2005
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ukm-17632016-12-14T06:30:11Z http://journalarticle.ukm.my/1763/ Earnings management and board characteristics: evidence from Malaysia Norman Mohd. Saleh, Takiah Mohd. Iskandar, Mohd. Mohid Rahmat, The Malaysian Code of Corporate Governance was introduced to improve the monitoring function of the board of directors, audit committee and the external audit. This study assesses the effectiveness of some board characteristics to monitor management behavior with respect to their incentives to manage earnings. We found discretionary accruals as a proxy for earnings management is negatively related to management ownership, but positively related to the existence of CEO-Chairman duality, after controlling for size, leverage and performance. The result shows multiple directorships factor is negatively related to earnings management proxy only in firms with negative unmanaged earnings. This implies multiple directorships factor is effective to detect earnings management practices to avoid losses. Examination of the data also shows that the ratio of independent board members is not significantly related to earnings management in firms with duality status Penerbit Universiti Kebangsaan Malaysia 2005-07 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/1763/1/Jp24-04.pdf Norman Mohd. Saleh, and Takiah Mohd. Iskandar, and Mohd. Mohid Rahmat, (2005) Earnings management and board characteristics: evidence from Malaysia. Jurnal Pengurusan, 24 . pp. 77-103. ISSN 0127-2713 http://www.ukm.my/penerbit/jurus.htm |
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Digital Repository |
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Local University |
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Universiti Kebangasaan Malaysia |
building |
UKM Institutional Repository |
collection |
Online Access |
language |
English |
description |
The Malaysian Code of Corporate Governance was introduced to improve the monitoring function of the board of directors, audit committee and the external audit. This study assesses the effectiveness of some board characteristics to monitor management behavior with respect to their incentives to manage earnings. We found discretionary accruals as a proxy for earnings management
is negatively related to management ownership, but positively related to the existence of CEO-Chairman duality, after controlling for size, leverage and
performance. The result shows multiple directorships factor is negatively related to earnings management proxy only in firms with negative unmanaged earnings. This implies multiple directorships factor is effective to detect
earnings management practices to avoid losses. Examination of the data also shows that the ratio of independent board members is not significantly related to earnings management in firms with duality status |
format |
Article |
author |
Norman Mohd. Saleh, Takiah Mohd. Iskandar, Mohd. Mohid Rahmat, |
spellingShingle |
Norman Mohd. Saleh, Takiah Mohd. Iskandar, Mohd. Mohid Rahmat, Earnings management and board characteristics: evidence from Malaysia |
author_facet |
Norman Mohd. Saleh, Takiah Mohd. Iskandar, Mohd. Mohid Rahmat, |
author_sort |
Norman Mohd. Saleh, |
title |
Earnings management and board characteristics: evidence from Malaysia |
title_short |
Earnings management and board characteristics: evidence from Malaysia |
title_full |
Earnings management and board characteristics: evidence from Malaysia |
title_fullStr |
Earnings management and board characteristics: evidence from Malaysia |
title_full_unstemmed |
Earnings management and board characteristics: evidence from Malaysia |
title_sort |
earnings management and board characteristics: evidence from malaysia |
publisher |
Penerbit Universiti Kebangsaan Malaysia |
publishDate |
2005 |
url |
http://journalarticle.ukm.my/1763/ http://journalarticle.ukm.my/1763/ http://journalarticle.ukm.my/1763/1/Jp24-04.pdf |
first_indexed |
2023-09-18T19:34:15Z |
last_indexed |
2023-09-18T19:34:15Z |
_version_ |
1777405165194706944 |