Earnings management, corporate governance and corporate performance among Malaysian listed companies

The lack of transparency in financial reports has several reasons, but the most important is earnings management practices which are implemented by managers. Indeed, managers, by using EM (Earnings Management) tools, manipulate accounting information to achieve some goals. This goes against Corporat...

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Main Author:	Nasiri, Mojtaba
Format:	Thesis
Language:	English
Published:	2020
Subjects:	HD28 Management Industrial Management
Online Access:	http://eprints.utm.my/id/eprint/102234/1/MojtabaNasiriPAHIBS2020.pdf.pdf
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id	my-utm-ep.102234
record_format	uketd_dc
spelling	my-utm-ep.1022342023-08-13T06:09:54Z Earnings management, corporate governance and corporate performance among Malaysian listed companies 2020 Nasiri, Mojtaba HD28 Management. Industrial Management The lack of transparency in financial reports has several reasons, but the most important is earnings management practices which are implemented by managers. Indeed, managers, by using EM (Earnings Management) tools, manipulate accounting information to achieve some goals. This goes against Corporate governance, whose primary goal is to deal with identifying potential mechanisms in which the shareholders of a corporation have more power and exercise control over the managers to protect their interests. Nevertheless, most researches have been concentrating on the relationship between corporate governance and firm performance, but only a few studies have regarded the moderator function of corporate governance on firm performance from different aspects. This study investigates whether corporate governance affects the relationship between earnings management and corporate performance by using data of listed companies in Bursa Malaysia. This study uses panel data analysis and uses the data from FTSE Russell by applying the intersection function to the constituents of FTSE Top 100 Bursa Malaysia during 2011 to 2015, which includes 59 companies in the form of 295 companies/year as time series data set. The results show that discretionary accruals (DAs) has significant effects on ROA, ROE, Tobin’s Q and EVA of firms in a weak governance regime. This study implies that managers in weakly governed firms are more likely to abuse accounting discretion than those in strongly governed firms, leading to decrease firm performance. Managers prefer using DAs to window-dress financial earnings, but this causes a more significant reversal of corporate value in the subsequent period. Conversely, DAs are positively and significantly related to firm performance in an influential governance regime. 2020 Thesis http://eprints.utm.my/id/eprint/102234/ http://eprints.utm.my/id/eprint/102234/1/MojtabaNasiriPAHIBS2020.pdf.pdf application/pdf en public http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:146003 phd doctoral Universiti Teknologi Malaysia Azman Hashim International Business School
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	HD28 Management Industrial Management
spellingShingle	HD28 Management Industrial Management Nasiri, Mojtaba Earnings management, corporate governance and corporate performance among Malaysian listed companies
description	The lack of transparency in financial reports has several reasons, but the most important is earnings management practices which are implemented by managers. Indeed, managers, by using EM (Earnings Management) tools, manipulate accounting information to achieve some goals. This goes against Corporate governance, whose primary goal is to deal with identifying potential mechanisms in which the shareholders of a corporation have more power and exercise control over the managers to protect their interests. Nevertheless, most researches have been concentrating on the relationship between corporate governance and firm performance, but only a few studies have regarded the moderator function of corporate governance on firm performance from different aspects. This study investigates whether corporate governance affects the relationship between earnings management and corporate performance by using data of listed companies in Bursa Malaysia. This study uses panel data analysis and uses the data from FTSE Russell by applying the intersection function to the constituents of FTSE Top 100 Bursa Malaysia during 2011 to 2015, which includes 59 companies in the form of 295 companies/year as time series data set. The results show that discretionary accruals (DAs) has significant effects on ROA, ROE, Tobin’s Q and EVA of firms in a weak governance regime. This study implies that managers in weakly governed firms are more likely to abuse accounting discretion than those in strongly governed firms, leading to decrease firm performance. Managers prefer using DAs to window-dress financial earnings, but this causes a more significant reversal of corporate value in the subsequent period. Conversely, DAs are positively and significantly related to firm performance in an influential governance regime.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Nasiri, Mojtaba
author_facet	Nasiri, Mojtaba
author_sort	Nasiri, Mojtaba
title	Earnings management, corporate governance and corporate performance among Malaysian listed companies
title_short	Earnings management, corporate governance and corporate performance among Malaysian listed companies
title_full	Earnings management, corporate governance and corporate performance among Malaysian listed companies
title_fullStr	Earnings management, corporate governance and corporate performance among Malaysian listed companies
title_full_unstemmed	Earnings management, corporate governance and corporate performance among Malaysian listed companies
title_sort	earnings management, corporate governance and corporate performance among malaysian listed companies
granting_institution	Universiti Teknologi Malaysia
granting_department	Azman Hashim International Business School
publishDate	2020
url	http://eprints.utm.my/id/eprint/102234/1/MojtabaNasiriPAHIBS2020.pdf.pdf
_version_	1776100875245191168

Earnings management, corporate governance and corporate performance among Malaysian listed companies

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