Association between Board characteristics and earnings quality: Malaysian Evidence

The present study examines the relationship between board characteristics and earnings quality after the amendment of the Malaysian Code on Corporate Governance in 2007. Using heteroskedasticity-corrected least square regressions upon a sample of Malaysian firms listed in 2008 and 2009, the study fi...

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Main Authors:	Redhwan Ahmed AL-Dhamari, Ku Nor Izah Ku Ismail
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2014
Online Access:	http://journalarticle.ukm.my/8368/ http://journalarticle.ukm.my/8368/ http://journalarticle.ukm.my/8368/1/7765-20216-1-PB.pdf

id	ukm-8368
recordtype	eprints
spelling	ukm-83682016-12-14T06:47:03Z http://journalarticle.ukm.my/8368/ Association between Board characteristics and earnings quality: Malaysian Evidence Redhwan Ahmed AL-Dhamari, Ku Nor Izah Ku Ismail, The present study examines the relationship between board characteristics and earnings quality after the amendment of the Malaysian Code on Corporate Governance in 2007. Using heteroskedasticity-corrected least square regressions upon a sample of Malaysian firms listed in 2008 and 2009, the study finds that the quality of earnings is higher among firms with independent chairmen than among those firms with non-independent chairmen. However, in contradiction to the expectations of the study, inconclusive results are found concerning board independence. The results also demonstrate that investors do not perceive board size as a good indicator of quality earnings. The findings imply that investors continue to have reservations regarding the ability of boards to enhance the quality of earnings, although efforts have been made to reform corporate governance following the Asian financial crisis. The study serves as a signal to policy makers to evaluate the importance of board mechanisms when enhancing financial reporting quality in emerging markets. Penerbit Universiti Kebangsaan Malaysia 2014 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/8368/1/7765-20216-1-PB.pdf Redhwan Ahmed AL-Dhamari, and Ku Nor Izah Ku Ismail, (2014) Association between Board characteristics and earnings quality: Malaysian Evidence. Jurnal Pengurusan, 41 . pp. 43-55. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/index
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	The present study examines the relationship between board characteristics and earnings quality after the amendment of the Malaysian Code on Corporate Governance in 2007. Using heteroskedasticity-corrected least square regressions upon a sample of Malaysian firms listed in 2008 and 2009, the study finds that the quality of earnings is higher among firms with independent chairmen than among those firms with non-independent chairmen. However, in contradiction to the expectations of the study, inconclusive results are found concerning board independence. The results also demonstrate that investors do not perceive board size as a good indicator of quality earnings. The findings imply that investors continue to have reservations regarding the ability of boards to enhance the quality of earnings, although efforts have been made to reform corporate governance following the Asian financial crisis. The study serves as a signal to policy makers to evaluate the importance of board mechanisms when enhancing financial reporting quality in emerging markets.
format	Article
author	Redhwan Ahmed AL-Dhamari, Ku Nor Izah Ku Ismail,
spellingShingle	Redhwan Ahmed AL-Dhamari, Ku Nor Izah Ku Ismail, Association between Board characteristics and earnings quality: Malaysian Evidence
author_facet	Redhwan Ahmed AL-Dhamari, Ku Nor Izah Ku Ismail,
author_sort	Redhwan Ahmed AL-Dhamari,
title	Association between Board characteristics and earnings quality: Malaysian Evidence
title_short	Association between Board characteristics and earnings quality: Malaysian Evidence
title_full	Association between Board characteristics and earnings quality: Malaysian Evidence
title_fullStr	Association between Board characteristics and earnings quality: Malaysian Evidence
title_full_unstemmed	Association between Board characteristics and earnings quality: Malaysian Evidence
title_sort	association between board characteristics and earnings quality: malaysian evidence
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2014
url	http://journalarticle.ukm.my/8368/ http://journalarticle.ukm.my/8368/ http://journalarticle.ukm.my/8368/1/7765-20216-1-PB.pdf
first_indexed	2023-09-18T19:52:13Z
last_indexed	2023-09-18T19:52:13Z
_version_	1777406295573266432

Association between Board characteristics and earnings quality: Malaysian Evidence

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