Corporate Governance And Earnings Management: Moderating Effect Of Family Ownership
After almost two decades of corporate governance implementation in Malaysia, there remain reservations on its effectiveness when applied to Malaysia’s corporate environment. The Malaysia Code on Corporate Governance which was directly modeled after the Cadbury Code in United Kingdom encountered seve...
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| Format: | Thesis |
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2015
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| Summary: | After almost two decades of corporate governance implementation in Malaysia, there remain reservations on its effectiveness when applied to Malaysia’s corporate environment. The Malaysia Code on Corporate Governance which was directly modeled after the Cadbury Code in United Kingdom encountered several institutional issues when implemented in Malaysia. As postulated by institutional theory, the institutional environment is one of the determining factors in the success of any system or structure of an organization. In this context, the effectiveness of corporate governance lies in its ability to assimilate the culture, norms, regulations and structures of social and economic systems that support the business existence. Marzuki and Abdul Wahab (2016) in their study between institutional factor and earnings conservatism find evidence of Bumiputra directors and family firms being conservative post International Financial Reporting Standards (IFRS). The findings highlight ethnicity and family firms as important institutional factors in the process of adopting IFRS. The gap established in this study is on the effect of board ethnicity or Bumiputra directors, family ownership and the role of corporate governance reform via Revised Malaysia Code On Corporate Governance (RMCCG) (2007) on earnings management activities in Malaysia. |
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