The impact of mandatory IFRS adoption on earnings management in Malaysia

This study investigates whether the impact of mandatory adoption of international accounting standards, IFRS, by Malaysian listed companies is associated with lower earnings management from 2009 to 2014. Earnings management is identified using absolute value of abnormal accruals, measured by ABACDEC...

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Main Author:	Noor Aini, Ariffin
Format:	Thesis
Language:	eng eng
Published:	2016
Subjects:	HF5601-5689 Accounting
Online Access:	https://etd.uum.edu.my/5567/1/s815593_01.pdf https://etd.uum.edu.my/5567/2/s815593_02.pdf
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id	my-uum-etd.5567
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Abdul Adzis, Azira
topic	HF5601-5689 Accounting
spellingShingle	HF5601-5689 Accounting Noor Aini, Ariffin The impact of mandatory IFRS adoption on earnings management in Malaysia
description	This study investigates whether the impact of mandatory adoption of international accounting standards, IFRS, by Malaysian listed companies is associated with lower earnings management from 2009 to 2014. Earnings management is identified using absolute value of abnormal accruals, measured by ABACDEC and ABACKAS. By using Ordinary Least Squares Regression (OLS) and fixed effects estimation, the result of this study concludes that Malaysian listed companies engage in more earnings management after IFRS adoption. This study also investigates whether size (ASSET), profitability (ROA) and leverage (LDEBTA) influence the level of earnings management in Malaysian listed companies. The result shows that ASSET has a negative relationship with ABACDEC and ABACKAS, implying that larger companies engage in less earnings management as compared to smaller companies. In the aspect of leverage, the results indicate that LDEBTA has a positive relationship with the ABACDEC and ABACKAS, demonstrating that high leverage companies engage in more earnings managements. Finally, ROA has a positive relationship with ABACDEC and ABACKAS, demonstrating that in Malaysia, more profitable companies involve in more earnings management
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Noor Aini, Ariffin
author_facet	Noor Aini, Ariffin
author_sort	Noor Aini, Ariffin
title	The impact of mandatory IFRS adoption on earnings management in Malaysia
title_short	The impact of mandatory IFRS adoption on earnings management in Malaysia
title_full	The impact of mandatory IFRS adoption on earnings management in Malaysia
title_fullStr	The impact of mandatory IFRS adoption on earnings management in Malaysia
title_full_unstemmed	The impact of mandatory IFRS adoption on earnings management in Malaysia
title_sort	impact of mandatory ifrs adoption on earnings management in malaysia
granting_institution	Universiti Utara Malaysia
granting_department	School of Economics, Finance & Banking
publishDate	2016
url	https://etd.uum.edu.my/5567/1/s815593_01.pdf https://etd.uum.edu.my/5567/2/s815593_02.pdf
_version_	1747827951267741696
spelling	my-uum-etd.55672021-04-19T02:47:49Z The impact of mandatory IFRS adoption on earnings management in Malaysia 2016-01 Noor Aini, Ariffin Abdul Adzis, Azira School of Economics, Finance & Banking Othman Yeop Abdullah Graduate School of Business HF5601-5689 Accounting This study investigates whether the impact of mandatory adoption of international accounting standards, IFRS, by Malaysian listed companies is associated with lower earnings management from 2009 to 2014. Earnings management is identified using absolute value of abnormal accruals, measured by ABACDEC and ABACKAS. By using Ordinary Least Squares Regression (OLS) and fixed effects estimation, the result of this study concludes that Malaysian listed companies engage in more earnings management after IFRS adoption. This study also investigates whether size (ASSET), profitability (ROA) and leverage (LDEBTA) influence the level of earnings management in Malaysian listed companies. The result shows that ASSET has a negative relationship with ABACDEC and ABACKAS, implying that larger companies engage in less earnings management as compared to smaller companies. In the aspect of leverage, the results indicate that LDEBTA has a positive relationship with the ABACDEC and ABACKAS, demonstrating that high leverage companies engage in more earnings managements. Finally, ROA has a positive relationship with ABACDEC and ABACKAS, demonstrating that in Malaysia, more profitable companies involve in more earnings management 2016-01 Thesis https://etd.uum.edu.my/5567/ https://etd.uum.edu.my/5567/1/s815593_01.pdf text eng public https://etd.uum.edu.my/5567/2/s815593_02.pdf text eng public masters masters Universiti Utara Malaysia Atwood, T. J., Drake, M. S., Myers, J. N., and Myers, L. A. (2011). Do Earnings Reported Under IFRS Tell Us More About Future Earnings and Cash Flows? Journal of Accounting and Public Policy, 30, 103-121. Ball, R., S.P. Kothari, and A. Robin. (2000). 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The impact of mandatory IFRS adoption on earnings management in Malaysia

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