Corporate governance mechanisms, accrual and real earnings management in Malaysia: the moderating role of family ownership and whistle-blowing policy

This study investigates the relationship between the board of directors (BOD) and the audit committee (AC) mechanisms and earnings management (EM). Furthermore, it examines the moderating effect of family ownership and the whistle-blowing policy on the relationship. The study sample involves 864 Mal...

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Main Author:	Al-Absy, Mujeeb Saif Mohsen
Format:	Thesis
Language:	eng eng eng eng
Published:	2019
Subjects:	HD28-70 Management Industrial Management
Online Access:	https://etd.uum.edu.my/9428/1/depositpermission-not%20allow_s901846.pdf https://etd.uum.edu.my/9428/2/s901846_01.pdf https://etd.uum.edu.my/9428/3/s901846_02.pdf https://etd.uum.edu.my/9428/4/s901846_references.docx
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id	my-uum-etd.9428
record_format	uketd_dc
spelling	my-uum-etd.94282022-05-29T10:06:08Z Corporate governance mechanisms, accrual and real earnings management in Malaysia: the moderating role of family ownership and whistle-blowing policy 2019 Al-Absy, Mujeeb Saif Mohsen Ku Ismail, Ku Nor Izah Chandren, Sitraselvi Tunku Puteri Intan Safinaz School of Accountancy (TISSA) Tunku Puteri Intan Safinaz School of Accountancy (TISSA) HD28-70 Management. Industrial Management This study investigates the relationship between the board of directors (BOD) and the audit committee (AC) mechanisms and earnings management (EM). Furthermore, it examines the moderating effect of family ownership and the whistle-blowing policy on the relationship. The study sample involves 864 Malaysian firm-year observations, with the lowest average of return on assets for the period of 2013 to 2015. Jones and Roychowdhury Models were used to measure the accrual earnings management (AEM) and real earnings management (REM). This study reveals that board chairman’s tenure, women on the board, board chairman’s duality (board chairman is also the AC chairman) and AC chairman’s accounting expertise reduce AEM. However, board ethnic diversity, AC independence, board chairman as an ordinary member of the AC, AC accounting expertise and AC chairman’s multiple directorships increase AEM. Regarding REM, the results show that women on the board, board ethnic diversity and board chairman’s duality reduce REM. However, board independence, board chairman as ordinary member in the AC, AC chairman’s accounting expertise and women in the AC increase REM. Within the interaction effect of family ownership, corporate governance (CG) mechanisms do not have much of a role in mitigating AEM and REM. However, family ownership positively moderates the relationship between some CG mechanisms and EM, specifically chairman’s tenure (against AEM) and board ethnic diversity and AC chairman’s multiple directorships (against REM). Within the interaction effect of the whistle-blowing policy, there is a negative relationship between board ethnic diversity and board chairman’s duality with AEM and board ethnic diversity and AC independence with REM. This study alerts policymakers to re-evaluate and enhance the possibility of applying the current Code of CG in firms, in particular, those firms with family members on the board or the whistle-blowing policy. 2019 Thesis https://etd.uum.edu.my/9428/ https://etd.uum.edu.my/9428/1/depositpermission-not%20allow_s901846.pdf text eng staffonly https://etd.uum.edu.my/9428/2/s901846_01.pdf text eng staffonly https://etd.uum.edu.my/9428/3/s901846_02.pdf text eng staffonly https://etd.uum.edu.my/9428/4/s901846_references.docx text eng staffonly other doctoral Universiti Utara Malaysia
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng eng eng
advisor	Ku Ismail, Ku Nor Izah Chandren, Sitraselvi
topic	HD28-70 Management Industrial Management
spellingShingle	HD28-70 Management Industrial Management Al-Absy, Mujeeb Saif Mohsen Corporate governance mechanisms, accrual and real earnings management in Malaysia: the moderating role of family ownership and whistle-blowing policy
description	This study investigates the relationship between the board of directors (BOD) and the audit committee (AC) mechanisms and earnings management (EM). Furthermore, it examines the moderating effect of family ownership and the whistle-blowing policy on the relationship. The study sample involves 864 Malaysian firm-year observations, with the lowest average of return on assets for the period of 2013 to 2015. Jones and Roychowdhury Models were used to measure the accrual earnings management (AEM) and real earnings management (REM). This study reveals that board chairman’s tenure, women on the board, board chairman’s duality (board chairman is also the AC chairman) and AC chairman’s accounting expertise reduce AEM. However, board ethnic diversity, AC independence, board chairman as an ordinary member of the AC, AC accounting expertise and AC chairman’s multiple directorships increase AEM. Regarding REM, the results show that women on the board, board ethnic diversity and board chairman’s duality reduce REM. However, board independence, board chairman as ordinary member in the AC, AC chairman’s accounting expertise and women in the AC increase REM. Within the interaction effect of family ownership, corporate governance (CG) mechanisms do not have much of a role in mitigating AEM and REM. However, family ownership positively moderates the relationship between some CG mechanisms and EM, specifically chairman’s tenure (against AEM) and board ethnic diversity and AC chairman’s multiple directorships (against REM). Within the interaction effect of the whistle-blowing policy, there is a negative relationship between board ethnic diversity and board chairman’s duality with AEM and board ethnic diversity and AC independence with REM. This study alerts policymakers to re-evaluate and enhance the possibility of applying the current Code of CG in firms, in particular, those firms with family members on the board or the whistle-blowing policy.
format	Thesis
qualification_name	other
qualification_level	Doctorate
author	Al-Absy, Mujeeb Saif Mohsen
author_facet	Al-Absy, Mujeeb Saif Mohsen
author_sort	Al-Absy, Mujeeb Saif Mohsen
title	Corporate governance mechanisms, accrual and real earnings management in Malaysia: the moderating role of family ownership and whistle-blowing policy
title_short	Corporate governance mechanisms, accrual and real earnings management in Malaysia: the moderating role of family ownership and whistle-blowing policy
title_full	Corporate governance mechanisms, accrual and real earnings management in Malaysia: the moderating role of family ownership and whistle-blowing policy
title_fullStr	Corporate governance mechanisms, accrual and real earnings management in Malaysia: the moderating role of family ownership and whistle-blowing policy
title_full_unstemmed	Corporate governance mechanisms, accrual and real earnings management in Malaysia: the moderating role of family ownership and whistle-blowing policy
title_sort	corporate governance mechanisms, accrual and real earnings management in malaysia: the moderating role of family ownership and whistle-blowing policy
granting_institution	Universiti Utara Malaysia
granting_department	Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
publishDate	2019
url	https://etd.uum.edu.my/9428/1/depositpermission-not%20allow_s901846.pdf https://etd.uum.edu.my/9428/2/s901846_01.pdf https://etd.uum.edu.my/9428/3/s901846_02.pdf https://etd.uum.edu.my/9428/4/s901846_references.docx
_version_	1747828594894176256

Corporate governance mechanisms, accrual and real earnings management in Malaysia: the moderating role of family ownership and whistle-blowing policy

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