Earnings management in Malaysia: the case of cash from operations and the behaviour of discretionary accruals / Rosnia Masruki

The objectives of this study are to investigate the relationship between the operating performances of firms listed on the Main Board of the Bursa Malaysia and to examine the behaviour of discretionary accruals during the period of 1999-2002. This dissertation hypothesized that the degree of earning...

Full description

Saved in:

Bibliographic Details
Main Author:	Masruki, Rosnia
Format:	Thesis
Language:	English
Published:	2004
Subjects:	Earnings management
Online Access:	https://ir.uitm.edu.my/id/eprint/31754/1/31754.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-uitm-ir.31754
record_format	uketd_dc
spelling	my-uitm-ir.317542020-07-22T02:55:38Z Earnings management in Malaysia: the case of cash from operations and the behaviour of discretionary accruals / Rosnia Masruki 2004 Masruki, Rosnia Earnings management The objectives of this study are to investigate the relationship between the operating performances of firms listed on the Main Board of the Bursa Malaysia and to examine the behaviour of discretionary accruals during the period of 1999-2002. This dissertation hypothesized that the degree of earnings management will depend on the level of the firm operating performances. Initially, the sample firms are divided into 10 portfolios based on relative cash from operations (CFO) rankings to test if there are systematic differences in discretionary accruals across portfolios. Four test methods (a mean accrual test, a correlation test, a regression analysis and a sign-change ratio test) are used to study if operating performances affect discretionary accruals differently. To further test the earning management hypotheses, two accrual estimation approaches (discretionary accruals and total accruals) are employed. The empirical evidence supports the predictions. It suggests that firms from various industries manage earnings, when operating performance is poor. The firms tend to choose income-increasing strategies, specifically, when the operating performance is extremely poor. In fact, some firms tend to take a big bath whereas some of the exceptionally well performing firms tend to select income-decreasing strategies. 2004 Thesis https://ir.uitm.edu.my/id/eprint/31754/ https://ir.uitm.edu.my/id/eprint/31754/1/31754.pdf text en public masters Universiti Teknologi MARA Faculty of Accountancy Ibrahim, Muhd Kamil
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
advisor	Ibrahim, Muhd Kamil
topic	Earnings management
spellingShingle	Earnings management Masruki, Rosnia Earnings management in Malaysia: the case of cash from operations and the behaviour of discretionary accruals / Rosnia Masruki
description	The objectives of this study are to investigate the relationship between the operating performances of firms listed on the Main Board of the Bursa Malaysia and to examine the behaviour of discretionary accruals during the period of 1999-2002. This dissertation hypothesized that the degree of earnings management will depend on the level of the firm operating performances. Initially, the sample firms are divided into 10 portfolios based on relative cash from operations (CFO) rankings to test if there are systematic differences in discretionary accruals across portfolios. Four test methods (a mean accrual test, a correlation test, a regression analysis and a sign-change ratio test) are used to study if operating performances affect discretionary accruals differently. To further test the earning management hypotheses, two accrual estimation approaches (discretionary accruals and total accruals) are employed. The empirical evidence supports the predictions. It suggests that firms from various industries manage earnings, when operating performance is poor. The firms tend to choose income-increasing strategies, specifically, when the operating performance is extremely poor. In fact, some firms tend to take a big bath whereas some of the exceptionally well performing firms tend to select income-decreasing strategies.
format	Thesis
qualification_level	Master's degree
author	Masruki, Rosnia
author_facet	Masruki, Rosnia
author_sort	Masruki, Rosnia
title	Earnings management in Malaysia: the case of cash from operations and the behaviour of discretionary accruals / Rosnia Masruki
title_short	Earnings management in Malaysia: the case of cash from operations and the behaviour of discretionary accruals / Rosnia Masruki
title_full	Earnings management in Malaysia: the case of cash from operations and the behaviour of discretionary accruals / Rosnia Masruki
title_fullStr	Earnings management in Malaysia: the case of cash from operations and the behaviour of discretionary accruals / Rosnia Masruki
title_full_unstemmed	Earnings management in Malaysia: the case of cash from operations and the behaviour of discretionary accruals / Rosnia Masruki
title_sort	earnings management in malaysia: the case of cash from operations and the behaviour of discretionary accruals / rosnia masruki
granting_institution	Universiti Teknologi MARA
granting_department	Faculty of Accountancy
publishDate	2004
url	https://ir.uitm.edu.my/id/eprint/31754/1/31754.pdf
_version_	1783734140842016768

Earnings management in Malaysia: the case of cash from operations and the behaviour of discretionary accruals / Rosnia Masruki

Similar Items