The determinants and value relevance of goodwill impairments in Malaysia firms: The role of corporate governance mechanisms

The determinants and value relevance of goodwill impairments in Malaysia firms: The role of corporate governance mechanisms

The purpose of this study is to examine the determinants and the value relevance of goodwill impairments. In contrast to similar studies, this study does not focus solely on management’s opportunistic reporting behavior. Instead, it provides some insights into the likelihood that they exercise their...

Full description

Saved in:
Bibliographic Details
Main Author: Al Hiyari, Ahmad Ali Eid
Format: Thesis
Language:eng
eng
Published: 2016
Subjects:
HD2709-2930.7 Corporations
Online Access:https://etd.uum.edu.my/6127/11/s94597_01.pdf
https://etd.uum.edu.my/6127/12/s94597_02.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
id my-uum-etd.6127
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Abdul Latif, Rohaida
Amran, Noor Afza
topic HD2709-2930.7 Corporations
spellingShingle HD2709-2930.7 Corporations
Al Hiyari, Ahmad Ali Eid
The determinants and value relevance of goodwill impairments in Malaysia firms: The role of corporate governance mechanisms
description The purpose of this study is to examine the determinants and the value relevance of goodwill impairments. In contrast to similar studies, this study does not focus solely on management’s opportunistic reporting behavior. Instead, it provides some insights into the likelihood that they exercise their discretion to improve the informational value of accounting information. In addition, this study compares the determinants of goodwill impairments across the pre- and the post Malaysian Code on Corporate Governance 2012 (MCCG 2012) and explores the influence of monitoring mechanisms on shareholders’ valuation assessments of goodwill impairments. By doing so, it extends the literature relating to the role of corporate governance in constraining management’s discretionary behavior associated with goodwill impairment testing. Using panel data over the period 2010 to 2014, the results show that goodwill impairments are associated with “big bath” behavior, an earnings management technique, and CEO changes. The results also indicate that these impairments generate value relevant and bad news to shareholders. Therefore, the combined findings suggest that establishing accounting standards which provide relevant information are difficult to implement reliably. Additionally, this study documents that, except for CEO changes, goodwill impairments have greater association with big bath behavior, and lower association with return on assets subsequent to MCCG 2012 implementation, consistent with criticisms of the MCCG. Finally, this study shows that effective corporate governance mitigates the bad news conveyed by goodwill impairments, indicating that firms with strong monitoring mechanisms are less likely to engage in big bath reporting behavior. Overall, the findings of this study should be useful to standard setters and policy makers who are interested in improving and evaluating the quality of goodwill reporting and corporate governance practices in Malaysia while emphasizing the importance of good corporate governance in ensuring credible accounting information
format Thesis
qualification_name Ph.D.
qualification_level Doctorate
author Al Hiyari, Ahmad Ali Eid
author_facet Al Hiyari, Ahmad Ali Eid
author_sort Al Hiyari, Ahmad Ali Eid
title The determinants and value relevance of goodwill impairments in Malaysia firms: The role of corporate governance mechanisms
title_short The determinants and value relevance of goodwill impairments in Malaysia firms: The role of corporate governance mechanisms
title_full The determinants and value relevance of goodwill impairments in Malaysia firms: The role of corporate governance mechanisms
title_fullStr The determinants and value relevance of goodwill impairments in Malaysia firms: The role of corporate governance mechanisms
title_full_unstemmed The determinants and value relevance of goodwill impairments in Malaysia firms: The role of corporate governance mechanisms
title_sort determinants and value relevance of goodwill impairments in malaysia firms: the role of corporate governance mechanisms
granting_institution Universiti Utara Malaysia
granting_department Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
publishDate 2016
url https://etd.uum.edu.my/6127/11/s94597_01.pdf
https://etd.uum.edu.my/6127/12/s94597_02.pdf
_version_ 1747828024605147136
spelling my-uum-etd.61272021-04-05T01:46:16Z The determinants and value relevance of goodwill impairments in Malaysia firms: The role of corporate governance mechanisms 2016 Al Hiyari, Ahmad Ali Eid Abdul Latif, Rohaida Amran, Noor Afza Tunku Puteri Intan Safinaz School of Accountancy (TISSA) Tunku Puteri Intan Safinaz School of Accountancy (TISSA) HD2709-2930.7 Corporations The purpose of this study is to examine the determinants and the value relevance of goodwill impairments. In contrast to similar studies, this study does not focus solely on management’s opportunistic reporting behavior. Instead, it provides some insights into the likelihood that they exercise their discretion to improve the informational value of accounting information. In addition, this study compares the determinants of goodwill impairments across the pre- and the post Malaysian Code on Corporate Governance 2012 (MCCG 2012) and explores the influence of monitoring mechanisms on shareholders’ valuation assessments of goodwill impairments. By doing so, it extends the literature relating to the role of corporate governance in constraining management’s discretionary behavior associated with goodwill impairment testing. Using panel data over the period 2010 to 2014, the results show that goodwill impairments are associated with “big bath” behavior, an earnings management technique, and CEO changes. The results also indicate that these impairments generate value relevant and bad news to shareholders. Therefore, the combined findings suggest that establishing accounting standards which provide relevant information are difficult to implement reliably. Additionally, this study documents that, except for CEO changes, goodwill impairments have greater association with big bath behavior, and lower association with return on assets subsequent to MCCG 2012 implementation, consistent with criticisms of the MCCG. Finally, this study shows that effective corporate governance mitigates the bad news conveyed by goodwill impairments, indicating that firms with strong monitoring mechanisms are less likely to engage in big bath reporting behavior. Overall, the findings of this study should be useful to standard setters and policy makers who are interested in improving and evaluating the quality of goodwill reporting and corporate governance practices in Malaysia while emphasizing the importance of good corporate governance in ensuring credible accounting information 2016 Thesis https://etd.uum.edu.my/6127/ https://etd.uum.edu.my/6127/11/s94597_01.pdf text eng public https://etd.uum.edu.my/6127/12/s94597_02.pdf text eng public Ph.D. doctoral Universiti Utara Malaysia Abbott, L. J., Parker, S., & Peters, G. F. (2004). Audit committee characteristics and restatements. Auditing: A Journal of Practice & Theory, 23(1), 69–87. Abbott, L. J., Parker, S., Peters, G. F., & Rama, D. V. (2007). Corporate governance, audit quality, and the Sarbanes-Oxley Act: Evidence from internal audit outsourcing. The Accounting Review, 82(4), 803–835. Abdifatah, A. H. (2014). The relationship between corporate governance attributes and firm performance before and after the revised code. International Journal of Commerce and Management, 24(2), 134 – 151. Abdul Majid, J. (2015). Reporting incentives, ownership concentration by the largest outside shareholder, and reported goodwill impairment losses. Journal of Contemporary Accounting & Economics, 11(3), 199–214. Abdul Rahman, R., & Mohamed Ali, F. H. (2006). Board, audit committee, culture and earnings management: Malaysian evidence. Managerial Auditing Journal, 21(7), 783–804. Abdul Wahab, E. A., Gist, W. E., & Abdul Majid, W. Z. N. (2014). Characteristics of non-audit services and financial restatements in Malaysia. Journal of Contemporary Accounting & Economics, 10(3), 225–247. Abdul Wahab, E. A., How, J., & Verhoeven, P. (2007). The impact of the Malaysian Code on Corporate Governance: Compliance, institutional investors and stock performance. Journal of Contemporary Accounting & Economics, 3(2), 106–129. Abdullah, M., Evans, L., Fraser, I., & Tsalavoutas, I. (2015). IFRS Mandatory disclosures in Malaysia: the influence of family control and the value (ir)relevance of compliance levels. Accounting Forum, 39(4), 328–348. Abdullah, S., Ahmad, J., & Ishak, R. (2004). Accounting treatment for goodwill among Bursa Malaysia Main Board Companies: The case of MAS 6. Malaysian Accounting Review, 3(1), 103–122. Abdullah, S. N., Yusof, N. Z. M., & Nor, M. N. M. (2010). Financial restatements and corporate governance among Malaysian listed companies. Managerial Auditing Journal, 25(6), 526–552. Abor, J. (2008). Agency theoretic determinants of debt levels: Evidence from Ghana. Review of Accounting and Finance, 7(2), 183–192. Abuaddous, M., Hanefah, M. M., & Laili, N. H. (2014). Accounting standards, goodwill impairment and earnings management in Malaysia. International Journal of Economics and Finance, 6(12), 201–211. AbuGhazaleh, N. M., Al-Hares, O. M., & Haddad, A. E. (2012). The value relevance of goodwill impairments: UK evidence. Intemational Joumal of Economics and Finance, 4(4), 206–216. AbuGhazaleh, N. M., Al-Hares, O. M., & Roberts, C. (2011). Accounting discretion in goodwill impairments: UK evidence. Journal of International Financial Management & Accounting, 22(3), 165–204. Agrawal, A., & Chadha, S. (2005). Corporate governance and accounting scandals. Journal of Law and Economics, 48(2), 371–406. Aguilera, R. V., & Cuervo-Cazurra, A. (2004). Codes of good governance worldwide: What is the trigger? Organization Studies, 25(3), 415–443. Aguilera, R. V., & Cuervo-Cazurra, A. (2009). Codes of good governance. Corporate Governance: An International Review, 17(3), 376–387. Ahmed, A. H., Tahat, Y. A., Burton, B. M., & Dunne, T. M. (2015). The value relevance of corporate internet reporting: The case of Egypt. Advances in Accounting, Incorporating Advances in International Accounting, 31(2), 188–196. Ahmed, A. S., & Duellman, S. (2007). Accounting conservatism and board of director characteristics: An empirical analysis. Journal of Accounting and Economics, 43(2-3), 411–437. Ahmed, A. S., Morton, R. M., & Schaefer, T. F. (2000). Accounting conservatism and the valuation of accounting numbers: Evidence on the Feltham-Ohlson (1996) Model. Journal of Accounting, Auditing & Finance, 15(3), 271–292. Al Jifri, K., & Citron, D. (2009). The value-relevance of financial statement recognition versus note disclosure: Evidence from goodwill accounting. European Accounting Review, 18(1), 123–140. Alfredson, K., Leo, K., Ruth, P., Pacter, P., & Radford, J. (2005). Applying international accounting standards. John Wiley & Sons Australia Ltd. Al-Hiyari, A., Abdul Latif, R., & Amran, N. A. (2016a). Do Big 4 auditors improve the ability of goodwill to forecast future cash flows? The Malaysian evidence. Corporate Ownership and Control, 13(2), 164–172. Al-Hiyari, A., Abdul Latif, R., & Amran, N. A. (2016b). The value relevance of goodwill in Malaysian listed firms: The pre- and post-IFRS evidence. International Journal of Business Research (forthcoming). Ali, S. M., Salleh, N. M., & Hassan, M. S. (2008). Ownership structure and earnings management in Malaysian listed companies: The size effect. Asian Journal of Business and Accounting, 1(2), 89–116. Alkdai, H. K. H., & Hanefah, M. M. (2012). Board of directors’ characteristics and value relevance of accounting information in Malaysian Shariah-Compliant Companies: A panel data analysis. Economics and Finance Review, 2(6), 31–44. Alonso-Paulí, E., & Pérez-Castrillo, D. (2012). Codes of Best Practice in competitive markets for managers. Economic Theory, 49(1), 113–141. Ammann, M., Oesch, D., & Schmid, M. M. (2011). Corporate governance and firm value: International evidence. Journal of Empirical Finance, 18(1), 36–55. Amran, N. A., & Che-Ahmad, A. (2009). Family business, board dynamics and firm value: Evidence from Malaysia. Journal of Financial Reporting & Accounting, 7(1), 53–74. Amran, N. A., & Che-Ahmad, A. (2010). Corporate governance mechanisms and performance: Analysis of Malaysian family and non-family controlled companies. Journal of Modern Accounting and Auditing, 6(2), 1–15. Amran, N. A., & Che-Ahmad, A. (2011). Board mechanisms and Malaysian family companies’ performance. Asian Journal of Accounting and Governance, 2, 15–26. Archambeault, D. S., Dezoort, F. T., & Hermanson, D. R. (2008). Audit committee incentive compensation and accounting restatements. Contemporary Accounting Research, 25(4), 965–992. Arcot, S., Bruno, V., & Faure-Grimaud, A. (2010). Corporate governance in the UK: Is the comply or explain approach working? International Review of Law and Economics, 30(2), 193–201. Ashbaugh-Skaife, H., Collins, D. W., & LaFond, R. (2006). The effects of corporate governance on firms’ credit ratings. Journal of Accounting and Economics, 42(1-2), 203–243. Baboukardos, D., & Rimmel, G. (2014). Goodwill under IFRS: Relevance and disclosures in an unfavorable environment. Accounting Forum, 38(1), 1–17. Ball, R. (2006). International Financial Reporting Standards (IFRS): Pros and cons for investors. Accounting & Business Research, 36(Special Issue), 5–27. Baltagi, B. H. (2008). Econometric analysis of panel data (4th ed.). Chichester, UK: John Wiley and Sons. Barth, M. E., Beaver, W. H., & Landsman, W. R. (2001). The relevance of the value relevance literature for financial accounting standard setting: Another view. Journal of Accounting and Economics, 31(1-3), 77–104. Barth, M. E., & Clinch, G. (2009). Scale effects in capital markets-based accounting research. Journal of Business Finance & Accounting, 36(3-4), 253–288. Barton, J. (2005). Who cares about auditor reputation? Contemporary Accounting Research, 22(3), 549–586. Bartov, E., Lindahl, F. W., & Ricks, W. E. (1998). Stock price behavior around announcements of write-offs. Review of Accounting Studies, 3(4), 327–346. Baxter, P., & Cotter, J. (2009). Audit committees and earnings quality. Accounting and Finance, 49(2), 267–290. Beasley, M. S. (1996). An empirical analysis of the relation between the board of director composition and financial statement fraud. The Accounting Review, 71(4), 443–465. Beasley, M. S., Carcello, J. V., Hermanson, D. R., & Lapides, P. D. (2000). Fraudulent financial reporting: Consideration of industry traits and corporate governance mechanisms. Accounting Horizons, 14(4), 441–454. Beatty, A., & Weber, J. (2006). Accounting discretion in fair value estimates: An examination of SFAS 142 goodwill impairments. Journal of Accounting Research, 44(2), 257–289. Beaver, W. H. (2002). Perspectives on recent capital market research. The Accounting Review, 77(2), 453–474. Becker, C. L., Defond, M. L., Jiambalvo, J., & Subramanyam, K. R. (1998). The effect of audit quality on earnings management. Contemporary Accounting Research, 15(1), 1–24. Bedard, J., Chtourou, S. M., & Courteau, L. (2004). The effect of audit committee expertise, independence, and activity on aggressive earnings management. Auditing: A Journal of Practice & Theory, 23(2), 13–35. Beidleman, C. R. (1973). Income smoothing: The role of management. The Accounting Review, 48(4), 653–667. Beisland, L. A. (2013). Equity valuation in practice: The influence of net financial expenses. Accounting Forum, 38(2), 122–131. Beltratti, A., Spear, N., & Szabo, M. D. (2013). The value relevance and timeliness of write-downs during the financial crisis of 2007–2009. International Journal of Accounting, 48(4), 467–494. Bens, D. A. (2006). Discussion of accounting discretion in fair value estimates: An examination of SFAS 142 goodwill impairments. Journal of Accounting Research, 44(2), 289–296. Bens, D., Heltzer, W., & Segal, B. (2011). The information content of goodwill impairments and SFAS 142. Journal of Accounting, Auditing & Finance, 26(3), 527–555. Boone, J. P., Khurana, I. K., & Raman, K. K. (2010). Do the Big 4 and the Second-tier firms provide audits of similar quality? Journal of Accounting and Public Policy, 29(4), 330–352. Boone, J. P., & Raman, K. K. (2007). Does implementation guidance affect opportunistic reporting and value relevance of earnings? Journal of Accounting and Public Policy, 26(2), 160–192. Bostwick, E. D., Krieger, K., & Lambert, S. L. (2015). Relevance of goodwill impairments to cash flow prediction and forecasting. Journal of Accounting, Auditing & Finance, (142), 1–26. Braswell, M., Daniels, R. B., Landis, M., & Chang, C. (2012). Characteristics of diligent audit committees. Journal of Business & Economics Research, 10(4), 191–206. Breusch, T. S., & Pagan, A. R. (1980). Lagrange multiplier test and to model applications specification in econometrics. Review of Economic Studies, 47(1), 239–253. Brick, I. E., & Chidambaran, N. K. (2010). Board meetings, committee structure, and firm value. Journal of Corporate Finance, 16(4), 533–553. Brown, P. (2011). International financial reporting standards: What are the benefits? Accounting and Business Research, 41(3), 269–285. Bruynseels, L., & Cardinaels, E. (2014). The audit committee: Management watchdog or personal friend of the CEO? The Accounting Review, 89(1), 113–145. Bursa Malaysia. (2009). Main Market: Listing Requirements. Retrieved from http://www.bursamalaysia.com/market/regulation/rules/listing-requirements/main-market/listing-requirements Bursa Malaysia. (2013). Main Market listing requirements. Retrieved from http://www.bursamalaysia.com/misc/system/assets/14809/regulation_rules_bm_main_LR.pdf Carcello, J. V., Hermanson, D. R., Neal, T. L., & Riley, R. A. (2002). Board characteristics and audit fees. Contemporary Accounting Research, 19(3), 365–384. Carlin, T. M., Finch, N., & Laili, N. (2009a). Goodwill accounting in Malaysia and the transition to IFRS – A compliance assessment of large first year adopters. Journal of Financial Reporting and Accounting, 7(1), 75–104. Carlin, T. M., Finch, N., & Laili, N. H. (2009b). Investigating audit quality among Big 4 Malaysian firms. Asian Review of Accounting, 17(2), 96 – 114. Chadwick, W. E. (2000). Keeping internal auditing in-house. Internal Auditor, 57(3), 88. Chalmers, K. G., Godfrey, J. M., & Webster, J. C. (2011). Does a goodwill impairment regime better reflect the underlying economic attributes of goodwill? Accounting and Finance, 51(3), 634–660. Chao, C.-L., & Horng, S.-M. (2013). Asset write-offs discretion and accruals management in Taiwan: The role of corporate governance. Review of Quantitative Finance and Accounting, 40(1), 41–74. Chen, C. J. P., Chen, S., & Su, X. (2001). Is accounting information value-relevant in the emerging Chinese stock market? Journal of International Accounting, Auditing and Taxation, 10(1), 1–22. Chen, C., Kohlbeck, M., & Warfield, T. (2008). Timeliness of impairment recognition : Evidence from the initial adoption of SFAS 142. Advances in Accounting, Incorporating Advances in International Accounting, 24(1), 72–81. Chen, C.-J., & Yu, C.-M. J. (2012). Managerial ownership, diversification, and firm performance: Evidence from an emerging market. International Business Review, 21(3), 518–534. Chen, G., Firth, M., Gao, D. N., & Rui, O. M. (2006). Ownership structure, corporate governance, and fraud: Evidence from China. Journal of Corporate Finance, 12(3), 424–448. Chen, J. J., & Zhang, H. (2014). The impact of the corporate governance code on earnings management - Evidence from Chinese listed companies. European Financial Management, 20(3), 596–632. Chen, K., & Zhou, J. (2007). Audit committee, board characteristics, and auditor switch decisions by Andersen’s clients. Contemporary Accounting Research, 24(4), 1085–1117. Chen, L. H., Krishnan, J., & Sami, H. (2015). Goodwill Impairment Charges and Analyst Forecast Properties. Accounting Horizons, 29(1), 141–169. Chen, V. J. H. (2013). The evolution of Malaysian shareholder protection: A legal origins analysis. Singapore Journal of Legal Studies, 1(1998), 100–124. Ching, K. M. L., Firth, M., & Rui, O. M. (2006). Earnings management, corporate governance and the market performance of seasoned equity offerings in Hong Kong. Journal of Contemporary Accounting & Economics, 2(1), 73–98. Christensen, J., Kent, P., Routledge, J., & Stewart, J. (2013). Do corporate governance recommendations improve the performance and accountability of small listed companies? Accounting & Finance. Chung, R., Firth, M., & Kim, J.-B. (2002). Institutional monitoring and opportunistic earnings management. Journal of Corporate Finance, 8(1), 29–48. Claessens, S., Djankov, S., & Lang, L. H. P. (2000). The separation of ownership and control in East Asian Corporations. Journal of Financial Economics, 58(1–2), 81–112. Claessens, S., & Fan, J. P. H. (2002). Corporate Governance in Asia: A Survey. International Review of Finance, 3(2), 71–103. Clarkson, P., Hanna, J. D., Richardson, G. D., & Thompson, R. (2011). The impact of IFRS adoption on the value relevance of book value and earnings. Journal of Contemporary Accounting and Economics, 7(1), 1–17. Coakes, S. J. (2013). SPSS version 20.0 for windows: Analysis without anguish. John Wiley & Sons, Australia, Ltd. Cohen, D. A., Dey, A., & Lys, T. Z. (2008). Real and accrual-based earnings management in the pre-and post-Sarbanes-Oxley periods. The Accounting Review, 83(3), 757–787. Cohen, J., Krishnamoorthy, G., & Wright, A. (2004). The corporate governance mosaic and financial reporting quality. Journal of Accounting Literature, 23(1), 87–152. Cohen, J. R., Krishnamoorthy, G., & Wright, A. M. (2008). Form versus substance: The implications for auditing practice and research of alternative perspectives on corporate governance. Auditing: A Journal of Practice &Theory, 27(2), 181–198. Cooper, J. (2007). Debating accounting principles and policies: The case of goodwill, 1880–1921. Accounting, Business & Financial History, 17(2), 241–264. Coram, P., Ferguson, C., & Moroney, R. (2008). Internal audit, alternative internal audit structures and the level of misappropriation of assets fraud. Accounting and Finance, 48(4), 543–559. Cornett, M. M., Marcus, A. J., & Tehranian, H. (2008). Corporate governance and pay-for-performance: The impact of earnings management. Journal of Financial Economics, 87(2), 357–373. Cornett, M. M., McNutt, J. J., & Tehranian, H. (2009). Corporate governance and earnings management at large U.S. bank holding companies. Journal of Corporate Finance, 15(4), 412–430. Cotter, J., Stokes, D., & Wyatt, A. (1998). An analysis of factors influencing asset writedowns. Accounting and Finance, 38(2), 157–179. Cullinan, C. P., Wang, F., Wang, P., & Zhang, J. (2012). Ownership structure and accounting conservatism in China. Journal of International Accounting, Auditing and Taxation, 21(1), 1–16. Dahya, J. A. Y., Mcconnell, J. J., & Travlos, N. G. (2002). The cadbury committee, corporate performance, and top management turnover. The Journal of Finance, 57(1), 461–483. Dalton, D. R., & Kesner, I. F. (1987). Composition and CEO duality in boards of directors: An international perspective. Journal of International Business Studies, 18(3), 33–42. Dandago, K. I., & Zamro, N. D. B. (2013). Effects of rotation on auditor independence and quality of audit service in Malaysian banking industry. Issues in Social and Environmental Accounting, 6(3/4), 95–110. Davidson, R., Goodwin-Stewart, J., & Kent, P. (2005). Internal governance structures and earnings management. Accounting and Finance, 45(2), 241–267. Davidson, W. N., Xie, B., & Xu, W. (2004). Market reaction to voluntary announcements of audit committee appointments: The effect of financial expertise. Journal of Accounting and Public Policy, 23(4), 279–293. DeAngelo, H., DeAngelo, L., & Skinner, D. J. (1994). Accounting choice in troubled companies. Journal of Accounting and Economics, 17(1-2), 113–143. DeAngelo, L. E. (1981). Auditor size and audit quality. Journal of Accounting and Economics, 3(3), 183–199. Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1996). Causes and consequences of earnings manipulation: An analysis of firms subject to enforcement actions by the SEC. Contemporary Accounting Research, 13(1), 1–36. Deegan, C., & Unerman, J. (2011). Financial accounting theory (2nd ed.). McGraw-Hill Education. Defond, M. L., Hann, R. N., & Hu, X. (2005). Does the market value financial expertise on audit committees of boards of directors? Journal of Accounting Research, 43(2), 153–193. Defond, M. L., & Jiambalvo, J. (1991). Incidence and circumstances of accounting errors. Accounting Review, 66(3), 643–655. DeFond, M. L., & Jiambalvo, J. (1993). Factors related to auditor-client disagreements over income-increasing accounting methods. Contemporary Accounting Research, 9(2), 415–431. DeFond, M. L., & Jiambalvo, J. (1994). Debt covenant violation and manipulation of accruals. Journal of Accounting & Economics, 17(1/2), 145–176. DeFond, M. L., & Park, C. W. (1997). Smoothing income in anticipation of future earnings. Journal of Accounting and Economics, 23(2), 115–139. Deloitte. (2015). Financial reporting framework in Malaysia. Retrieved September 30, 2015, from http://www.iasplus.com/en/jurisdictions/asia/malaysia Desai, N. K., Gerard, G. J., & Tripathy, A. (2011). Internal audit sourcing arrangements and reliance by external auditors. Auditing: A Journal of Practice & Theory, 30(1), 149–171. Dey, A. (2008). Corporate governance and agency conflicts. Journal of Accounting Research, 46(5), 1143–1181. DeZoort, F. T. (1997). An investigation of audit committees’ oversight responsibilities. Abacus: A Journal of Accounting, Finance and Business Studies, 33(2), 208–227. Dezoort, F. T. (1998). An analysis of experience effects on audit committee members’ oversight judgments. Accounting, Organizations and Society, 23(1), 1–21. Dichev, I., & Skinner, D. (2002). Large-sample evidence on the debt covenant hypothesis. Journal of Accounting Research, 40(4), 1091–1123. Drukker, D. M. (2003). Testing for serial correlation in linear panel-data models. Stata Journal, 3(2), 168–177. Duangploy, O., Shelton, M., & Omer, K. (2005). The value relevance of goodwill impairment loss. Bank Accounting & Finance, 18(5), 23–28. Duh, R.-R., Lee, W.-C., & Lin, C.-C. (2009). Reversing an impairment loss and earnings management: The role of corporate governance. The International Journal of Accounting, 44(2), 113–137. Dye, R. A., & Verrecchia, R. R. (1995). Discretion vs. uniformity: Choices among GAAP. The Accounting Review, 70(3), 389–415. Elliott, B., & Elliott, J. (2002). Financial accounting, reporting and analysis. Pearson Education Limited. Elliott, J., & Shaw, W. (1988). Write-offs as accounting procedures to manage perceptions. Journal of Accounting Research, 26(3), 91–119. Eloff, A.-M., & Villiers, C. de. (2015). The value-relevance of goodwill reported under IFRS 3 versus IAS 22. South African Journal of Accounting Research, (May 2015), 1–15. Elshandidy, T. (2014). Value relevance of accounting information: Evidence from an emerging market. Advances in Accounting, 30(1), 176–186. Enriques, L., & Volpin, P. (2007). Corporate governance reforms in continental Europe. Journal of Economic Perspectives, 21(1), 117–140. Ernst &Young. (2010). International GAAP 2010: General accepted accounitng practice under International Financial Reporting Standards. John Wiley & Sons, Ltd. Ernst & Young. (2011). Impairment of long-lived assets, goodwill and intangible assets. Retrieved November 30, 2013, from http://www.ey.com/Publication/vwLUAssets/Impairment_of_long_lived_assets,_goodwill_and_intangible_assets/$FILE/ME_Impairment goodwill and intangible.pdf Eshleman, J. D., & Guo, P. (2014). Do Big 4 auditors provide higher audit quality after controlling for the endogenous choice of auditor? Auditing: A Journal of Practice & Theory, 33(4), 197–219. Everitt, B. S. (2010). Multivariable modeling and multivariate analysis for the behavioral sciences (2nd ed.). Taylor & Francis Group, LLC. Fama, E. F. (1980). Agency problems and the theory of the firm. The Journal of Political Economy, 88(2), 288–307. Fama, E. F., & Jensen, M. C. (1983). Separation of ownership and control. Journal of Law & Economics, 26(2), 301–326. Fan, J. P. ., & Wong, T. . (2002). Corporate ownership structure and the informativeness of accounting earnings in East Asia. Journal of Accounting and Economics, 33(3), 401–425. Farber, D. B. (2005). Restoring trust after fraud: Does corporate governance matter? The Accounting Review, 80(2), 539–561. Fields, T., Lys, T., & Vincent, L. (2001). Empirical research on accounting choice. Journal of Accounting and Economics, 31(1), 255–307. Filip, A., Jeanjean, T., & Paugam, L. (2015). Using real activities to avoid goodwill impairment losses: Evidence and effect on future performance. Journal of Business Finance & Accounting, 42(3-4), 515–554. Firstenberg, P. B., & Malkiel, B. G. (1995). The twenty-first century boardroom: Who will be in charge? Sloan Management Review, 36(1), 27–35. Florackis, C., & Ozkan, A. (2009). The impact of managerial entrenchment on agency costs: An empirical investigation using UK panel data. European Financial Management, 15(3), 497–528. Franceschi, G., & Chang, J. (2012). Goodwill impairment testing post-financial crisis. Financial Executive, 28(10), 27–29. Francis, J., Hanna, J. D., & Vincent, L. (1996). Causes and effects of discretionary asset write-offs. Journal of Accounting Research, 34(3), 117–134. Francis, J. R., & Wang, D. (2008). The joint effect of investor protection and Big 4 audits on earnings quality around the world. Contemporary Accounting Research, 25(1), 157–91. Francis, J. R., & Yu, M. D. (2009). Big 4 office size and audit quality. The Accounting Review, 84(5), 1521–1552. Fudenberg, D., & Tirole, J. (1995). A theory of income and dividend smoothing based on incumbency rents. Journal of Political Economy, 103(75-93). Fung, S. Y. K., Su, L. N., & Zhu, X. K. (2010). Price divergence from fundamental value and the value relevance of accounting information. Contemporary Accounting Research, 27(3), 829–854. García-Sánchez, I.-M. (2010). The effectiveness of corporate governance: Board structure and business technical efficiency in Spain. Central European Journal of Operations Research, 18(3), 311–339. Ge, W., Drury, D. H., Fortin, S., Liu, F., & Tsang, D. (2010). Value relevance of disclosed related party transactions. Advances in Accounting, Incorporating Advances in International Accounting, 26(1), 134–141. Germain, L., Galy, N., & Lee, W. (2014). Corporate governance reform in Malaysia: Board size, independence and monitoring. Journal of Economics and Business, 75, 126–162. Ghosh, A., Marra, A., & Moon, D. (2010). Corporate boards, audit committees, and earnings management: Pre- and post-SOX evidence. Journal of Business Finance & Accounting, 37(9-10), 1145–1176. Gillan, S. L., & Starks, L. T. (2003). Corporate governance, corporate ownership, and the role of institutional investors: A global perspective. Journal of Applied Finance, 13(2), 4–22. Giner, B., & Pardo, F. (2014). How ethical are managers’ goodwill impairment decisions in Spanish-listed firms? Journal of Business Ethics. Glover, S. M., Prawitt, D. F., & Wood, D. a. (2008). Internal audit sourcing arrangement and the external auditor’s reliance decision. Contemporary Accounting Research, 25(1), 193–213. Godfrey, J. M., Hodgson, A., Tarca, A., Hamilton, J., & Holmes, S. (2010). Accounting theory (7th ed.). John Wiley & Sons, Australia, Ltd. Godfrey, J. M., & Koh, P.-S. (2009). Goodwill impairment as a reflection of investment opportunities. Accounting & Finance, 49(1), 117–140. Goh, L., & Gupta, A. (2015). Remuneration of non-executive directors: Evidence from the UK. The British Accounting Review. Goncharov, I., Werner, J. R., & Zimmermann, J. (2006). Does compliance with the German corporate governance code have an impact on stock valuation? An empirical analysis. Corporate Governance: An International Review, 14(5), 432–445. Governance Newsletter. (2010). Call for comprehensive CG code in Malaysia. Governance Newsletter, (197), 6–6. Governance Newsletter. (2011). Malaysian Corporate Governance Blueprint 2011. Governance Newsletter, (206), 5–5. Greco, G., Ferramosca, S., & Allegrini, M. (2015). The influence of family ownership on long-lived asset write-offs. Family Business Review, 28(4), 355–371. Gujarati, D. N., & Porter, D. C. (2009). Basic econometrics. (5, Ed.). McGraw-Hill International. New York. Gul, F. a. (2006). Auditors’ response to political connections and cronyism in Malaysia. Journal of Accounting Research, 44(5), 931–963. Guler, L. (2007). Goodwill impairment charges under SFAS 142: Role of executives’ incentives and corporate governance. Unpublished dissertation in partial fulfilllment of the requirements for the degree of Doctor of Philosophy. Texas A&M University. Habib, A., & Azim, I. (2008). Corporate governance and the value-relevance of accounting information. Accounting Research Journal, 21(2), 167–194. Habib, A., Hossain, M., & Jiang, H. (2011). Environmental uncertainty and the market pricing of earnings smoothness. Advances in Accounting, 27(2), 256–265. Hamberg, M., & Beisland, L.-A. (2014). Changes in the value relevance of goodwill accounting following the adoption of IFRS 3. Journal of International Accounting, Auditing and Taxation, 23(2), 59–73. Hamberg, M., Paananen, M., & Novak, J. (2011). The adoption of IFRS 3: The effects of managerial discretion and stock market reactions. European Accounting Review, 20(2), 263–288. Hamilton, L. C. (2012). Statistics with STATA (12th ed.). Cengage Learning. Haniffa, R., & Hudaib, M. (2006). Corporate governance structure and performance of Malaysian listed companies. Journal of Business Finance & Accounting, 33(7-8), 1034–1062. Haron, N. H., & Atan, R. (2010). Goodwill impairment-earnings management during the new FRS 3 transitions: Evidence from the main board of Bursa Malaysia. In Proceedings of the 4th WSEAS International Conference on Business Administration. UK (pp. 48–61). Hartzell, J. C., & Starks, L. T. (2003). Institutional investors and executive compensation. The Journal of Finance, 58(6), 2351–2374. Hashim, H. A., & Devi, S. (2008a). Board characteristics, ownership structure and earnings quality: Malaysian evidence. Research in Accountingin Emerging Economies, 8, 97 – 123. Hashim, H. A., & Devi, S. S. (2008b). Board independence, CEO duality and accrual management: Malaysian evidence. Asian Journal of Business and Accounting, 1(1), 27–46. Hasnan, S., Rahman, R. A., & Mahenthiran, S. (2013). Management motive, weak governance, earnings management, and fraudulent financial reporting: Malaysian evidence. Journal of International Accounting Research, 12(1), 1–27. Hausman, J. A., & Taylor, W. E. (1981). Panel data and unobservable individual effects. Econometrica, 49(6), 1377–1398. Hayn, C., & Hughes, P. J. (2006). Leading indicators of goodwill impairment. Journal of Accounting, Auditing & Finance, 21(3), 223–265. Healy, P. M. (1985). The effect of bonus schemes on accounting decisions. Journal of Accounting and Economics, 7(1-3), 85–107. Henderson, S., Peirson, G., & Herbohn, K. (2008). Issues in financial accounting (13th ed.). Pearson Education Australia. Hilton, A. S., & O’brien, P. C. (2009). Inco ltd.: Market value, fair value, and management discretion. Journal of Accounting Research, 47(1), 179–211. Hirschey, M., & Richardson, V. J. (2002). Information content of accounting goodwill numbers. Journal of Accounting and Public Policy, 21(3), 173–191. Hoechle, D. (2007). Robust standard errors for panel regressions with cross-sectional dependence. The Stata Journal, 7(3), 281–312. Holthausen, R. W. (1990). Accounting method choice: Opportunistic behavior, efficient contracting, and information perspectives. Journal of Accounting and Economics, 12(1-3), 207–218. Holthausen, R. W., Larcker, D. F., & Sloan, R. G. (1995). Business unit innovation and the structure of executive compensation. Journal of Accounting and Economics, 19(2-3), 279–313. Holthausen, R. W., & Watts, R. L. (2001). The relevance of the value-relevance literature for financial accounting standard setting. Journal of Accounting and Economics, 31(1-3), 3–75. Hsiao, C. (2003). Analysis of Panel Data (2nd ed.). Cambridge university press. Htay, S. N. N., Salman, S. A., & Shaugee, I. (2013). Invisible hands behind the corporate governance practices in Malaysia. World Journal of Social Sciences, 3(1), 119–135. Hulzen, P. Van, Alfonso, L., Georgakopoulos, G., & Sotiropoulos, I. (2011). Amortization versus impairment of goodwill and accounting quality. International Journal of Economic Sciences and Applied Research, 4(3), 93–118. Hussin, B. M., Ahmed, A. D., & Ying, T. C. (2010). Semi-strong form efficiency: Market reaction to dividend and earnings announcements in Malaysian stock exchange. The IUP Journal of Applied Finance, 16(5), 36–60. Iatridis, G. E., & Senftlechner, D. (2014). An empirical investigation of goodwill in Austria: Evidence on management change and cost of capital. Australian Accounting Review, 24(2), 171–181. Ishak, R., Ismail, K. N. I. K., & Abdullah, S. N. (2013). CEO succession and firm performance: Evidence from publicly listed Malaysian firms. Asian Academy of Management Journal of Accounting and Finance, 9(2), 29–48. Ismail, R., & Rahman, R. A. (2011). Institutional investors and board of directors’ monitoring role on risk management disclosure level in Malaysia. Journal of Corporate Governance, 10(2), 37–61. Jackling, B., & Johl, S. (2009). Board structure and firm performance: Evidence from India’s top companies. Corporate Governance: An International Review, 17(4), 492–509. Jaggi, B., Leung, S., & Gul, F. (2009). Family control, board independence and earnings management: Evidence based on Hong Kong firms. Journal of Accounting and Public Policy, 28(4), 281–300. James, K., How, J., & Verhoeven, P. (2008). Did the goodwill accounting standard impose material economic consequences on Australian acquirers? Accounting and Finance, 48(4), 625–647. Jamil, N. N., & Nelson, S. P. (2011). An investigation on the audit committees effectiveness : The case for GLCs in Malaysia. Gadjah Mada International Journal of Business, 13(3), 287–305. Jarva, H. (2009). Do firms manage fair value estimates? An examination of SFAS 142 goodwill impairments. Journal of Business Finance & Accounting, 36((9/10)), 1059–1086. Jarva, H. (2014). Economic consequences of SFAS 142 goodwill. Accounting and Finance, 54(1), 211–235. Jeffrey, C. (2008). How internal audit adds strategic value. Financial Executive, 24(10), 19–19. Jennings, R., LeClere, M., & Thompson, R. (2001). Goodwill amortization and the usefulness of earnings. Financial Analysts Journal, 57(5), 20–28. Jensen, M. C. (1993). The modern industrial revolution, exit, and the failure of internal control systems. The Journal of Finance, 48(3), 831–880. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. Jo, H., & Kim, Y. (2007). Disclosure frequency and earnings management. Journal of Financial Economics, 84(2), 561–590. Johl, S., Jubb, C. A., & Houghton, K. A. (2007). Earnings management and the audit opinion: Evidence from Malaysia. Managerial Auditing Journal, 22(7), 688–715. Jolliffe, I. T. (2002). Principal components analysis. Springer Series in Statistics (2nd ed.). New York: Springer. Jordan, C., & Clark, S. (2004). Big bath earnings management: The case of goodwill impairment under SFAS No. 142. Journal of Applied Business Research, 20(2), 63–70. Jordan, C., Clark, S., & Vann, C. (2007). Using goodwill impairment to effect earnings management during SFAS No. 142’s year of adoption and later. Journal of Business & Economic Research, 5(1), 23–30. Kampel, C. (2012). Why privately held and family-owned businesses should have independent boards of directors. Financial Executive, 28(9), 18–18. Kanagaretnam, K., Lobo, G. J., & Whalen, D. J. (2007). Does good corporate governance reduce information asymmetry around quarterly earnings announcements? Journal of Accounting and Public Policy, 26(4), 497–522. Keune, M. B., & Johnstone, K. M. (2012). Materiality judgments and the resolution of detected misstatements: The role of managers, auditors, and audit committees. The Accounting Review, 87(5), 1641–1677. Khalifa, H. K. H., & Hanefah, M. M. (2012). Audit committee characteristics and earnings management in Malaysian Shariah-compliant companies. Business and Management Review, 2(2), 52–61. Khurana, I. K., & Raman, K. K. (2004). Litigation risk and the financial reporting credibility of Big 4 versus non-Big 4 Audits: Evidence from Anglo-American countries. The Accounting Review, 79(2), 473–495. Kirby, S. L., & Davis, M. a. (1998). A study of escalating commitment in principal-agent relationships: Effects of monitoring and personal responsibility. Journal of Applied Psychology, 83(2), 206–217. Kirschenheiter, M., & Melumad, N. (2002). Can “big bath” and earnings smoothing co-exist as equilibrium financial reporting strategies? Journal of Accounting Research, 40(3), 761–796. Klein, A. (2002). Audit committee, board of director characteristics, and earnings management. Journal of Accounting and Economics, 33(3), 375–400. Knauer, T., & Wöhrmann, A. (2015). Market Reaction to Goodwill Impairments. European Accounting Review, (June 2015), 1–29. Koh, P.-S. (2003). On the association between institutional ownership and aggressive corporate earnings management in Australia. The British Accounting Review, 35(2), 105–128. Koh, P.-S. (2007). Institutional investor type, earnings management and benchmark beaters. Journal of Accounting and Public Policy, 26(3), 267–299. Kothari, S. P. (2001). Capital markets research in accounting. Journal of Accounting and Economics, 31(1-3), 105–231. Kothari, S. P., Ramanna, K., & Skinner, D. J. (2010). Implications for GAAP from an analysis of positive research in accounting. Journal of Accounting and Economics, 50(2-3), 246–286. KPMG. (2011). Insights into Malaysia’s convergence with IFRS. Retrieved from kpmg.com/my KPMG. (2014). Who cares about goodwill impairment? A collection of stakeholder views. Retrieved from kpmg.com/ifrs Krishnan, G. V., & Parsons, L. M. (2007). Getting to the bottom line: An exploration of gender and earnings quality. Journal of Business Ethics, 78(1-2), 65–76. Krishnan, G. V. (2003). Does big 6 auditor industry expertise constrain earnings management? Accounting Horizons, 17(Supplement), 1–16. Krishnan, G. V, & Visvanathan, G. (2008). Does the SOX definition of an accounting expert matter? The association between audit committee directors’ accounting expertise and accounting conservatism. Contemporary Accounting Research, 25(3), 827–858. Krishnan, G., & Visvanathan, G. (2009). Do auditors price audit committee’s expertise? The case of accounting versus nonaccounting financial experts. Journal of Accounting, Auditing & Finance, 24(1), 115–144. Kwong, L. C. (2010). The value relevance of financial reporting in Malaysia: Evidence from three different financial reporting periods. International Journal of Business and Accountancy, 1(1), 1–19. Lafond, R., & Roychowdhury, S. (2008). Managerial ownership and accounting conservatism. Journal of Accounting Research, 46(1), 101–135. Laghi, E., Mattei, M., & Marcantonio, M. Di. (2013). Assessing the value relevance of goodwill impairment considering country-specific factors: Evidence from EU listed companies. International Journal of Economics and Finance, 5(7), 32–49. Lai, K.-W. (2013). Audit reporting of big 4 versus non-big 4 suditors: The case of ex-Andersen clients. The International Journal of Accounting, 48(4), 495–524. Landsman, W. R. (2007). Is fair value accounting information relevant and reliable? Evidence from capital market research. Accounting and Business Research (Wolters Kluwer UK), 37(Special Issue), 19–30. Lapointe-Antunes, P., Cormier, D., & Magnan, M. (2008). Equity recognition of mandatory accounting changes: The case of transitional goodwill impairment losses. Canadian Journal of Administrative Sciences, 25(1), 37–54. Lapointe-Antunes, P., Cormier, D., & Magnan, M. (2009). Value relevance and timeliness of transitional goodwill-impairment losses: Evidence from Canada. The International Journal of Accounting, 44(1), 56–78. Larcker, D. F., Richardson, S. A., & Tuna, I. (2007). Corporate governance, accounting outcomes, and organizational performance. The Accounting Review, 82(4), 963–1008. Lasalle, R. E., Jones, S. K., & Jain, R. (1993). The association between executive succession and discretionary accounting changes: Earnings management or different perspectives? Journal of Business Finance & Accounting, 20(5), 653–671. Laskaridou, E. C., & Vazakidis, A. (2013). Detecting Asset Impairment Management: Some evidence from Food and Beverage listed Companies. Procedia Technology, 8, 493–497. Lawrence, A., Minutti-Meza, M., & Zhang, P. (2011). Can big 4 versus non-big 4 differences in audit-quality proxies be attributed to client characteristics? The Accounting Review, 86(1), 259–286. Lee, C. (2011). The effect of SFAS 142 on the ability of goodwill to predict future cash flows. Journal of Accounting and Public Policy, 30(3), 236–255. Lee, C., & Yoon, S. W. (2012). The effects of Goodwill accounting on informativeness of earnings : Evidence from earnings persistence and earnings ’ ability to predict future cash flows. Journal of Accounting & Finance, 12(3), 124–147. Lee, H.-L., & Lee, H. (2013). Do Big 4 audit firms improve the value relevance of earnings and equity? Managerial Auditing Journal, 28(7), 628–646. Lee, S.-C., Lin, C.-T., & Chang, P.-T. (2011). An Ohlson valuation framework for valuing corporate governance: The case of Taiwan. Pacific-Basin Finance Journal, 19(4), 420–434. Leong, C. H. (2013). Malaysian Code on Corporate Governance 2012 (“MCCG 2012”). Retrieved from http://hoileongchan.blogspot.com/2014/01/malaysian-code-on-corporate-governance.html Lewis, R., & Pendrill, D. (1996). Advanced financial accounting (5th ed.). Pitman Publishing. Li, Z., Shroff, P. K., Venkataraman, R., & Zhang, I. X. (2011). Causes and consequences of goodwill impairment losses. Review of Accounting Studies, 16(4), 745–778. Liew, P. K. (2007). Corporate governance reforms in Malaysia: The key leading players’ perspectives. Corporate Governance: An International Review, 15(5), 724–740. Liew, P. K. (2008). The (Perceived) roles of corporate governance reforms in Malaysia: The views of corporate practitioners. Research in Accounting in Emerging Economies, 8, 455–482. Lim, K. P., Ismail, H., & Eze, U. C. (2013). Corporate governance and financial performance of public listed companies: Pre and post implementation of the Malaysian code of corporate governance. Corporate Ownership and Control, 10(4), 355–376. Lim, M., How, J., & Verhoeven, P. (2014). Corporate ownership, corporate governance reform and timeliness of earnings: Malaysian evidence. Journal of Contemporary Accounting & Economics, 10(1), 32–45. Lin, C., Ma, Y., & Su, D. (2009). Corporate governance and firm efficiency: Evidence from China’s publicly listed firms. Managerial & Decision Economics, 30(3), 193–209. Lo, A. W. Y., Wong, R. M. K., & Firth, M. (2010). Can corporate governance deter management from manipulating earnings? Evidence from related-party sales transactions in China. Journal of Corporate Finance, 16(2), 225–235. Loh, A. L. C., & Tan, T. H. (2002). Asset write-offs—managerial incentives and macroeconomic factors. Abacus, 38(1), 134–151. Machuga, S., & Teitel, K. (2007). The effects of the Mexican corporate governance code on quality of earnings and its components. Journal of International Accounting Research, 6(1), 37–55. Machuga, S., & Teitel, K. (2009). Board of director characteristics and earnings quality surrounding implementation of a corporate governance code in Mexico. Journal of International Accounting, Auditing and Taxation, 18(1), 1–13. Mak, Y. ., & Li, Y. (2001). Determinants of corporate ownership and board structure: Evidence from Singapore. Journal of Corporate Finance, 7(3), 235–256. MASB. (2011). The Conceptual Framework for Financial Reporting. MASB. (2015). MASB Approved Accounting Standards for Entities other than Private Entities. Retrieved September 30, 2015, from http://www.masb.org.my/index.php?option=com_content&view=article&id=1657&Itemid=14 Massoud, M. F., & Raiborn, C. A. (2003). Accounting for goodwill: Are we better off? Review of Business, 24(2), 26– 32. Masters-Stout, B., Costigan, M., & Lovata, L. (2008). Goodwill impairments and chief executive officer tenure. Critical Perspectives on Accounting, 19(8), 1370–1383. McDaniel, L., Martin, R. D., & Maines, L. A. (2002). Evaluating financial reporting quality: The effects of financial expertise vs. financial literacy. The Accounting Review, 77(4), 139–167. Menon, K., & Williams, J. D. (1994). The use of audit committees for monitoring. Journal of Accounting and Public Policy, 13(2), 121–139. Meyers, L. S., Gamst, G., & Guarino, A. J. (2006). Applied Multivariate Research: Design and Interpretation (2nd ed.). Sage Publication, Inc. Millimet, D. (2001). What is the difference between “endogeneity” and “sample selection bias”? Retrieved May 4, 2016, from http://www.stata.com/support/faqs/statistics/endogeneity-versus-sample-selection-bias/ Ming, T. C., Gul, F. A., Foo, Y.-B., & Majid, A. (2013). CEO compensation and firm performance in Malaysian firms: Some evidence on the role of institutional investors. Working paper. JCAE Symposium 2014 Minnick, K. (2011). The role of corporate governance in the write-off decision. Review of Financial Economics, 20(4), 130–145. Mitra, S., & Cready, W. M. (2005). Institutional stock ownership, accrual management, and information environment. Journal of Accounting, Auditing & Finance, 20(3), 257–286. Mohamad-Nor, M. N., Shafie, R., & Wan-Hussin, W. N. (2010). Corporate governance and audit report lag in Malaysia. Asian Academy of Management Journal of Accounting and Finance, 6(2), 57–84. Mohd-Saleh, N., & Omar, N. (2014). CEO duality, family-control and goodwill impairment. Asian Journal of Business and Accounting, 7(1), 143–179. Moore, M. (1973). Management changes and discretionary accounting decisions. Journal of Accounting Research, 11(1), 100–107. Morck, R., Shleifer, A., & Vishny, R. W. (1988). Management ownership and market valuation: An empirical analysis. Journal of Financial Economics, 20, 293–315. Muniandy, B., & Ali, M. J. (2012). Development of financial reporting environment in Malaysia. Research in Accounting Regulation, 24(2), 115–125. Murphy, K. (2001). Performance standards in incentive contracts. Journal of Accounting and Economics, 30(3), 245–278. Mustapha, M., & Che-Ahmad, A. (2011). Agency theory and managerial ownership: Evidence from Malaysia. Managerial Auditing Journal, 26(5), 419–436. Nelson, S. P., & Devi, S. (2013). Audit committee experts and earnings quality. Corporate Governance, 13(4), 335–351. Nikolaev, V. (2010). Debt covenants and accounting conservatism. Journal of Accounting Research, 48(1), 137–176. Nowland, J. (2008). The effect of national governance codes on firm disclosure practices: Evidence from analyst earnings forecasts. Corporate Governance: An International Review, 16(6), 475–491. Ohlson, J. (1995). Earnings, book values, and dividends in equity valuation. Contemporary Accounting Research, 11(2), 661–687. Omar, N. binti, Mohd-Saleh, N., Salleh, M. F. M., & Ahmed, K. (2015). The influence of family and government-controlled firms on goodwill impairment: Evidence from Malaysia. Journal of Accounting in Emerging Economies, 5(4), 479–506. Omar, N., & Mohd-Saleh, N. (2011). Family and government influence on goodwill impairment: Evidence from Malaysia. In International Conference on Financial Management and Economics (Vol. 11, pp. 400–404). Owens-Jackson, L. A., Robinson, D., & Shelton, S. W. (2009). The association between audit committee characteristics, the contracting process and fraudulent financial reporting. American Journal of Business, 24(1), 57–65. Ow-Yong, K., & Guan, C. K. (2000). Corporate governance codes: A comparison between Malaysia and the UK. Corporate Governance: An International Review, 8(2), 125–132. Ozkan, N. (2011). CEO compensation and firm performance: An empirical investigation of UK panel data. European Financial Management, 17(2), 260–285. Paek, S., Xiao, Q., Lee, S., & Song, H. (2013). Does managerial ownership affect different corporate social responsibility dimensions? An empirical examination of U.S. publicly traded hospitality firms. International Journal of Hospitality Management, 34, 423–433. Palia, D. (2001). The endogeneity of managerial compensation in firm valuation: A solution. Review of Financial Studies, 14(3), 735–764. Pasricha, N. (2012). New Malaysian Corporate Governance Code 2012. Retrieved from http://www.maicsa.org.my/article_coverstory/2012/article_coverstory_1204.aspx Paugam, L., Astolfi, P., & Ramond, O. (2015). Accounting for business combinations: Do purchase price allocations matter? Journal of Accounting and Public Policy, 33. Pearce, J. A., & Zahra, S. A. (1992). Board composition from a strategic contingency perspective. Journal of Management Studies, 29(4), 411–438. Peasnell, K. V., Pope, P. F., & Young, S. (2000). Accrual management to meet earnings targets: UK evidence pre- and post-Cadbury. The British Accounting Review, 32(4), 415–445. Peetathawatchai, P., & Acaranupong, K. (2012). Are impairment indicators and losses associated in Thailand? Journal of Financial Reporting and Accounting, 10(1), 95 – 114. Petersen, C., & Plenborg, T. (2010). How do firms implement impairment tests of goodwill? Abacus, 46(4), 419–446. Petersen, M. a. (2009). Estimating standard errors in finance panel data sets: Comparing approaches. Review of Financial Studies, 22(1), 435–480. PricewaterhouseCoopers. (2010). Manual of accounting-IFRS 2011. Wolters Kluwer (India) Pvt, Ltd., New Delhi. Qasim, A., Haddad, A., & AbuGhazaleh, N. (2013). Goodwill accounting in the United Kingdom: The effect of international financial reporting standards. Review of Business and Finance Studies, 4(1), 63–78. Rajagopalan, N., & Zhang, Y. (2008). Corporate governance reforms in China and India: Challenges and opportunities. Business Horizons, 51(1), 55–64. Ramanna, K. (2008). The implications of unverifiable fair-value accounting: Evidence from the political economy of goodwill accounting. Journal of Accounting and Economics, 45(2-3), 253–281. Ramanna, K., & Watts, R. L. (2009). Evidence from goodwill non-impairments on the effects of using unverifiable estimates in financial reporting. Working Papers - Harvard Business School Division of Research, 1–41. Ramanna, K., & Watts, R. L. (2012). Evidence on the use of unverifiable estimates in required goodwill impairment. Review of Accounting Studies, 17(4), 749–780. Rees, L., Gill, S., & Gore, R. (1996). An investigation of asset write-downs and concurrent abnormal accruals. Journal of Accounting Research, 34(3), 157–169. Riedl, E. J. (2004). An examination of long-lived asset impairments. The Accounting Review, 79(3), 823–852. Roberts, M. R., & Sufi, A. (2009). Renegotiation of financial contracts: Evidence from private credit agreements. Journal of Financial Economics, 93(2), 159–184. Robinson, D. R., & Owens-Jackson, L. A. (2009). Audit committee characteristics and auditor changes. Academy of Accounting and Financial Studies Journal, 13(Special Issue), 117–132. Ronen, J., & Yaari, V. (2008). Earnings management - emerging insights in theory, practice, and research. New York University, New York. Roychowdhury, S., & Martin, X. (2013). Understanding discretion in conservatism: An alternative viewpoint. Journal of Accounting and Economics, 56(2-3), 134–146. Salameh, R., Al-Weshah, G., Al-Nsour, M., & Al-Hiyari, A. (2011). Alternative internal audit structures and perceived effectiveness of internal audit in fraud prevention : Evidence from Jordanian banking industry. Canadian Social Science, 7(3), 40–50. Saleh, N. M., Iskandar, T. M., & Rahmat, M. M. (2005). Earnings management and board characteristics : Evidence from Malaysia. Jurnal Pengurusan, 24(4), 77–103. Saleh, N. M., Iskandar, T. M., & Rahmat, M. M. (2007). Audit committee characteristics and earnings management: Evidence from Malaysia. Asian Review of Accounting, 15(2), 147–163. Salim, M. R. (2006). Legal transplantation and local knowledge: Corporate governance in Malaysia. Australian Journal of Corporate Law, 20(10), 1–29. Salleh, N. M. Z. N., & Haat, M. H. che. (2013). Audit Committee diversity – Malaysian evidence after the revision of MCCG. Malaysian Accounting Review, 12(2), 91–113. Salleh, Z., & Stewart, J. (2012). The role of the audit committee in resolving auditor-client disagreements: A Malaysian study. Accounting, Auditing & Accountability Journal, 25(8), 1340–1372. Schwartz-Ziv, M., & Weisbach, M. S. (2013). What do boards really do? Evidence from minutes of board meetings. Journal of Financial Economics, 108(2), 349–366. Scott, W. R. (2012). Financial accounting thoey (6th ed.). Pearson, Prentice Hall. Securities Commission. (2000). Malaysian Code on Corporate Governance. Retrieved from http://www.ecgi.org/codes/documents/mccg_mar2000.pdf Securities Commission. (2007). Malaysian Code on Corporate Governance (Revised 2007). Retrieved from http://www.ecgi.org/codes/documents/cg_code_malaysia_2007_en.pdf Securities Commission. (2011). Corporate Governance Blueprint 2011: Towards Excellence in Corporate Governance. Retrieved from http://www.sc.com.my/wp-content/uploads/eng/html/cg/cg2011/pdf/cg_blueprint2011.pdf Securities Commission. (2012). Malaysian Code On Corporate Governance 2012. Retrieved from http://www.sc.com.my/malaysian-code-on-corporate-governance-2012/ Securities Commission. (2013). Malaysian Code On Corporate Governance 2012. Retrieved September 27, 2013, from http://www.sc.com.my/malaysian-code-on-corporate-governance-2012/ Securities Commission. (2014). Malaysia Code for Institutional Investors. Retrieved October 6, 2014, from http://www.sc.com.my/wp-content/uploads/eng/html/cg/mcii_140627.pdf Setia-Atmaja, L., Haman, J., & Tanewski, G. (2011). The role of board independence in mitigating agency problem II in Australian family firms. The British Accounting Review, 43(3), 230–246. Sevin, S., & Schroeder, R. (2005). Earnings management: Evidence from SFAS No. 142 reporting. Managerial Auditing Journal, 20(1), 47–54. Shameen, A., & Oorjitham, S. (1998). I’ve lost my voice. Asiaweek, 24(12), 4. Sharma, V. D. (2004). Board of director characteristics, institutional ownership, and fraud: Evidence from Australia. Auditing: A Journal of Practice & Theory, 23(2), 107–119. Shieifer, A., & Vishny, R. W. (1986). Large shareholders and corporate control. Journal of Political Economy, 94(3), 461–488. Skinner, D. J. (2008). Discussion of “The implications of unverifiable fair-value accounting: Evidence from the political economy of goodwill accounting.” Journal of Accounting and Economics, 45(2-3), 282–288. Song, C. J., Thomas, W. B., & Yi, H. (2010). Value relevance of FAS No. 157 fair value hierarchy information and the impact of corporate governance mechanisms. The Accounting Review, 85(4), 1375–1410. Speklé, R. F., Elten, van H. J., & Kruis, A.-M. (2007). Sourcing of internal auditing: An empirical study. Management Accounting Research, 18(1), 102–124. Srinivasan, S. (2005). Consequences of Financial Reporting Failure for Outside Directors: Evidence from Accounting Restatements and Audit Committee Members. Journal of Accounting Research, 43(2), 291–334. Startz, R. (2009). Eviews illustrated for version 7. Quantitative Micro Software, LLC. Strong, J. S., & Meyer, J. R. (1987). Asset writedowns: Managerial incentives and security returns. Journal of Finance, 42(3), 643–661. Studenmund, A. H. (2005). Using Econometrics: A Practical Guide (5th ed.). Addison Wesley. Subramanyam, K. (1996). The pricing of discretionary accruals. Journal of Accounting and Economics, 22(1-3), 249–281. Susela, S. D. (1999). “Interests” and accounting standard setting in Malaysia. Accounting, Auditing & Accountability Journal, 12(3), 358 – 387. Tabachnick, B. G., & Fidell, L. S. (2013). Using Multivariate Statistics (6th ed.). Pearson Education, Inc. Tam, O. K., & Tan, M. G.-S. (2007). Ownership, governance and firm performance in Malaysia. Corporate Governance: An International Review, 15(2), 208–223. Tanaka, T. (2014). Gender diversity in the boards and the pricing of publicly traded corporate debt: Evidence from Japan. Applied Financial Economics, 24(4), 247–258. Tariq, Y. Bin, & Abbas, Z. (2013). Compliance and multidimensional firm performance: Evaluating the efficacy of rule-based code of corporate governance. Economic Modelling, 35, 565–575. The Star News. (2012). Ready for recommendations? Retrieved September 7, 2015, from http://www.thestar.com.my/Story/?file=%2F2012%2F3%2F31%2Fbusiness%2F11022663 Thoopsamut, W., & Jaikengkit, A. (2009). Audit committee characteristics, audit firm size and quaterly earnings management in Thailand. Oxford Journal, 8(1), 3–12. Tong, T. L. (1997). Financial accounting and reporting in Malaysia (1st ed.). Thomson Information, Kuala Lumpur. Tong, T. L. (2012). Financial accounting and reporting in Malaysia (4th ed.). CCH Asia Pte Limited. Tucker, J., & Zarowin, P. (2006). Does income smoothing improve earnings informativeness? The Accounting Review, 81(1), 251–270. Vafeas, N. (1999). Board meeting frequency and firm performance. Journal of Financial Economics, 53(1), 113–142. Vafeas, N. (2000). Board structure and the informativeness of earnings. Journal of Accounting and Public Policy, 19(2), 139–160. Vafeas, N. (2005). Audit committees, boards, and the quality of reported earnings. Contemporary Accounting Research, 22(4), 1093–1122. Vance, S. C. (1983). Corporate leadership: Boards of directors and strategy. McGraw-Hill Companies. Velury, U., & Jenkins, D. S. (2006). Institutional ownership and the quality of earnings. Journal of Business Research, 59(9), 1043–1051. Verriest, A., & Gaeremynck, A. (2009). What determines goodwill impairment? Review of Business and Economics, 54(2), 106–128. Verriest, A., Gaeremynck, A., & Thornton, D. B. (2013). The Impact of Corporate Governance on IFRS Adoption Choices. European Accounting Review, 22(1), 39–77. Villalonga, B., & Amit, R. (2006). How do family ownership, control and management affect firm value? Journal of Financial Economics, 80(2), 385–417. Vithiatharan, V., & Gomez, E. T. (2014). Politics, economic crises and corporate governance reforms: Regulatory capture in Malaysia. Journal of Contemporary Asia, 44(4), 599–615. Wahab, E. A. A., How, J., & Verhoeven, P. (2008). Corporate governance and institutional investors : Evidence from Malaysia. Asian Academy of Management Journal of Accounting and Finance, 4(2), 67–90. Walsh, P., Craig, R., & Clarke, F. (1991). Big bath accounting’ using extraordinary items adjustments: Australian empirical evidence. Journal of Business Finance & Accounting, 18(2), 173–189. Wan-Hussin, W. N. (2009). The impact of family-firm structure and board composition on corporate transparency: Evidence based on segment disclosures in Malaysia. International Journal of Accounting, 44(4), 313–333. Wan-Hussin, W. N., & Bamahros, H. M. (2013). Do investment in and the sourcing arrangement of the internal audit function affect audit delay? Journal of Contemporary Accounting & Economics, 9(1), 19–32. Warfield, T. D., Wild, J. J., & Wild, K. L. (1995). Managerial ownership , accounting choices , and informativeness of earnings. Journal of Accounting and Economics, 20(1), 61–91. Warner, J. B., & Watts, R. L. (1988). Stock prices and top management changes. Journal of Financial Economics, 20, 461–492. Watts, R. L. (2003). Conservatism in accounting part I: Explanations and implications. Accounting Horizons, 17(3), 207–221. Watts, R. L., & Zimmerman, J. L. (1979). The demand for and supply of accounting theories: The market for excuses. The Accounting Review, 54(2), 273–305. Watts, R. L., & Zimmerman, J. L. (1986). Positive accounting theory. New Jersey: Prentice-Hall, Inc. Watts, R. L., & Zimmerman, J. L. (1990). Positive accounting theory: A ten year Perspective. The Accounting Review, 65(1), 131–156. Wayman, R. (2014). Impairment charges: The good, the bad And the ugly. Retrieved September 27, 2014, from http://www.investopedia.com/articles/analyst/110502.asp Weisbach, M. S. (1995). CEO turnover and the firm’s investment decisions. Journal of Financial Economics, 37(2), 159–188. Wells, P. (2002). Earnings management surrounding CEO changes. Accounting and Finance, 42(2), 169–193. Westphal, J. D. (1998). Board games: How CEOs adapt to increases in structural board independence from management. Administrative Science Quarterly, 43(3), 511–537. Wilson, G. P. (1996). Discussion write-offs: Manipulation or impairment? Journal of Accounting Research, 34(3), 171–177. Wines, G., Dagwell, R., & Windsor, C. (2007). Implications of the IFRS goodwill accounting treatment. Managerial Auditing Journal, 22(9), 862–880. Wolk, H. I., Dodd, J. L., & Rozycki, J. J. (2013). Accounting theoy: Conceptual issues in a political and economic environment (8th ed.). SAGA Publications, Inc. Xie, B., Davidson, W. N., & DaDalt, P. J. (2003). Earnings management and corporate governance: The role of the board and the audit committee. Journal of Corporate Finance, 9(3), 295–316. Xu, W., Anandarajan, A., & Curatola, A. (2011). The value relevance of goodwill impairment. Research in Accounting Regulation, 23(2), 145–148. Yang, J. S., & Krishnan, J. (2005). Audit committees and quarterly earnings management. International Journal of Auditing, 9(3), 201–219. Yatim, P. (2009). Audit committee characteristics and risk management of Malaysian listed firms. Malaysian Accounting Review, 8(1), 19–36. Yermack, D. (1996). Higher market valuation of companies with a small board of directors. Journal of Financial Economics, 40(2), 185–211. Yit, S. T. (2013). The Malaysian Code on Corporate Governance 2012. Retrieved September 7, 2015, from http://www.srmonitor.org/malaysian-code-of-governance-2012.html Zalewska, A. (2014). Challenges of corporate governance: Twenty years after Cadbury, ten years after Sarbanes–Oxley. Journal of Empirical Finance, 27, 1–9. Zang, Y. (2008). Discretionary behavior with respect to the adoption of SFAS no. 142 and the behavior of security prices. Review of Accounting and Finance, 7(1), 38–68. Zattoni, A., & Cuomo, F. (2008). Why adopt codes of good governance? A comparison of institutional and efficiency perspectives. Corporate Governance: An International Review, 16(1), 1–15. Zucca, L. J., & Campbell, D. R. (1992). A closer look at discretionary writedowns of impaired assets. Accounting Horizons, 6(3), 30–41.

Similar Items