Earning Quality in MESDAQ Company

Earning Management can be viewed from financial reporting perspective. From a financial reporting perspective, managers may use earning management to meet analysts' earning forecast, thereby avoiding the strong negative share price reaction that quickly follow a failure to meet investor expecta...

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Main Author:	Siti Nor Junita, Mohd Radzi
Format:	Thesis
Language:	eng eng
Published:	2008
Subjects:	HF5601-5689 Accounting
Online Access:	https://etd.uum.edu.my/234/1/Siti_Nor_Junita.pdf https://etd.uum.edu.my/234/2/Siti_Nor_Junita.pdf
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id	my-uum-etd.234
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
topic	HF5601-5689 Accounting
spellingShingle	HF5601-5689 Accounting Siti Nor Junita, Mohd Radzi Earning Quality in MESDAQ Company
description	Earning Management can be viewed from financial reporting perspective. From a financial reporting perspective, managers may use earning management to meet analysts' earning forecast, thereby avoiding the strong negative share price reaction that quickly follow a failure to meet investor expectations. Also, they may record excessive write off or emphasize earning construct such as net income. Management may use it to create a stream of smooth and growing earning over time. Give securities market efficiency, this requires management to draw on its inside information. Thus, earning management can be a vehicle for the communication of management's inside information to investors. Too much earning management, however, reduces the earning quality and the ability investor to interpret current net income as well, particularly if the earning management is buried in core earning or otherwise not fully disclosed. The reported net income is useful to investor in evaluating future firm performance but excessive earning management may reduce this usefulness. Thus this study is very important because from the research findings shows that the size of audit firm, internal audit establishment and former senior auditor as company director have no significantly effect on earning management which being proxy by total discretionary accruals. An understanding of the earning management is also important to accountants because it enables an improved understanding of the usefulness of the net income, especially for reporting to investor. It also may assist them to avoid some of the serious legal and reputation consequences that arise when firms become financially distress where such distress is often preceded by serious abuse of earnings management.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Siti Nor Junita, Mohd Radzi
author_facet	Siti Nor Junita, Mohd Radzi
author_sort	Siti Nor Junita, Mohd Radzi
title	Earning Quality in MESDAQ Company
title_short	Earning Quality in MESDAQ Company
title_full	Earning Quality in MESDAQ Company
title_fullStr	Earning Quality in MESDAQ Company
title_full_unstemmed	Earning Quality in MESDAQ Company
title_sort	earning quality in mesdaq company
granting_institution	Universiti Utara Malaysia
granting_department	College of Business (COB)
publishDate	2008
url	https://etd.uum.edu.my/234/1/Siti_Nor_Junita.pdf https://etd.uum.edu.my/234/2/Siti_Nor_Junita.pdf
_version_	1747826867137675264
spelling	my-uum-etd.2342013-07-24T12:06:15Z Earning Quality in MESDAQ Company 2008-11 Siti Nor Junita, Mohd Radzi College of Business (COB) Faculty of Accounting HF5601-5689 Accounting Earning Management can be viewed from financial reporting perspective. From a financial reporting perspective, managers may use earning management to meet analysts' earning forecast, thereby avoiding the strong negative share price reaction that quickly follow a failure to meet investor expectations. Also, they may record excessive write off or emphasize earning construct such as net income. Management may use it to create a stream of smooth and growing earning over time. Give securities market efficiency, this requires management to draw on its inside information. Thus, earning management can be a vehicle for the communication of management's inside information to investors. Too much earning management, however, reduces the earning quality and the ability investor to interpret current net income as well, particularly if the earning management is buried in core earning or otherwise not fully disclosed. The reported net income is useful to investor in evaluating future firm performance but excessive earning management may reduce this usefulness. Thus this study is very important because from the research findings shows that the size of audit firm, internal audit establishment and former senior auditor as company director have no significantly effect on earning management which being proxy by total discretionary accruals. An understanding of the earning management is also important to accountants because it enables an improved understanding of the usefulness of the net income, especially for reporting to investor. It also may assist them to avoid some of the serious legal and reputation consequences that arise when firms become financially distress where such distress is often preceded by serious abuse of earnings management. 2008-11 Thesis https://etd.uum.edu.my/234/ https://etd.uum.edu.my/234/1/Siti_Nor_Junita.pdf application/pdf eng validuser https://etd.uum.edu.my/234/2/Siti_Nor_Junita.pdf application/pdf eng public masters masters Universiti Utara Malaysia Aboody, D., and R. Kasznik, (2000). "CEO Stock Option awards and the timing of corporate voluntary disclosures". Journal of Accounting and Economics 29 : 73 - 100 Ashbaugh-Skaife, H., D. Collins, W. Kinney, and R. LaFond. (2006). "Internal Control Deficiencs, Remediation and Accrual Quality". Working Paper, University of Wisconsin, University of Lowa, University of Texas at Austin and MIT. Baber, W. R., Fairfield, P.M., Haggard, J.A., (1991). 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Earning Quality in MESDAQ Company

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