Governance mechanisms and earnings management practices in Malaysian public listed firms

Corporate management misconducts have caused many corporate failures, most of which involving earnings manipulation. The resulting corporate failures have raised questions related to the effectiveness of corporate governance mechanisms (CGM) in curbing management’s manipulation of financial reports....

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Bibliographic Details
Main Author:	Nuhu, Muhammad Shaheer
Format:	Thesis
Published:	2023
Subjects:	HG4001-4285 Finance management Business finance.
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id	my-mmu-ep.12885
record_format	uketd_dc
spelling	my-mmu-ep.128852024-08-29T05:33:03Z Governance mechanisms and earnings management practices in Malaysian public listed firms 2023-08 Nuhu, Muhammad Shaheer HG4001-4285 Finance management. Business finance. Corporate management misconducts have caused many corporate failures, most of which involving earnings manipulation. The resulting corporate failures have raised questions related to the effectiveness of corporate governance mechanisms (CGM) in curbing management’s manipulation of financial reports. The Malaysian Code on Corporate Governance encourages corporations to go above and beyond when it comes to corporate governance. This study was conducted with the aim to explore the effect of internal and external governance mechanisms in predicting earnings management. Specifically, this study examines the following factors in relation to earnings management: external audit quality, audit and board committees, internal control disclosure, quality of accounting practice, leadership and organisational structure. Corporate data of listed firms on Bursa Malaysia covering financial periods of 2011 to 2021 were used to examine the research hypotheses. The analytical method used in the current study was descriptive statistic and panel corrected standard error (PCSE) methods of panel regression through STATA version 17. Five models were used to estimate earnings management practices. Findings provide support on the effectiveness of the following governance mechanisms: independent specialised auditor T, audit reputation, audit opinion, internal control system disclosure, audit committee size, audit committee meetings, audit committee financial expertise, remuneration committee, supervisory board size, management compensation, family ownership and foreign ownership. On the contrary, gender composition, nomination committee, timely loss recognition, value relevance, corporate volunteer disclosure, corporate risk disclosure were found to be ineffective in predicting earnings management. 2023-08 Thesis https://shdl.mmu.edu.my/12885/ http://erep.mmu.edu.my/ phd doctoral Multimedia University Faculty of Business (FOB) EREP ID: 12309
institution	Multimedia University
collection	MMU Institutional Repository
topic	HG4001-4285 Finance management Business finance.
spellingShingle	HG4001-4285 Finance management Business finance. Nuhu, Muhammad Shaheer Governance mechanisms and earnings management practices in Malaysian public listed firms
description	Corporate management misconducts have caused many corporate failures, most of which involving earnings manipulation. The resulting corporate failures have raised questions related to the effectiveness of corporate governance mechanisms (CGM) in curbing management’s manipulation of financial reports. The Malaysian Code on Corporate Governance encourages corporations to go above and beyond when it comes to corporate governance. This study was conducted with the aim to explore the effect of internal and external governance mechanisms in predicting earnings management. Specifically, this study examines the following factors in relation to earnings management: external audit quality, audit and board committees, internal control disclosure, quality of accounting practice, leadership and organisational structure. Corporate data of listed firms on Bursa Malaysia covering financial periods of 2011 to 2021 were used to examine the research hypotheses. The analytical method used in the current study was descriptive statistic and panel corrected standard error (PCSE) methods of panel regression through STATA version 17. Five models were used to estimate earnings management practices. Findings provide support on the effectiveness of the following governance mechanisms: independent specialised auditor T, audit reputation, audit opinion, internal control system disclosure, audit committee size, audit committee meetings, audit committee financial expertise, remuneration committee, supervisory board size, management compensation, family ownership and foreign ownership. On the contrary, gender composition, nomination committee, timely loss recognition, value relevance, corporate volunteer disclosure, corporate risk disclosure were found to be ineffective in predicting earnings management.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Nuhu, Muhammad Shaheer
author_facet	Nuhu, Muhammad Shaheer
author_sort	Nuhu, Muhammad Shaheer
title	Governance mechanisms and earnings management practices in Malaysian public listed firms
title_short	Governance mechanisms and earnings management practices in Malaysian public listed firms
title_full	Governance mechanisms and earnings management practices in Malaysian public listed firms
title_fullStr	Governance mechanisms and earnings management practices in Malaysian public listed firms
title_full_unstemmed	Governance mechanisms and earnings management practices in Malaysian public listed firms
title_sort	governance mechanisms and earnings management practices in malaysian public listed firms
granting_institution	Multimedia University
granting_department	Faculty of Business (FOB)
publishDate	2023
_version_	1811768016897048576

Governance mechanisms and earnings management practices in Malaysian public listed firms

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