Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat

Mohd Iskandar, Takiah and Rahmat, Mohd Mohid (2005) Avoidance of reported earnings decreases and losses: evidence from Malaysia / Norman Mohd Saleh, Takiah Mohd Iskandar and Mohd Mohid Rahmat. Malaysian Accounting Review, 4 (1). pp. 25-37. ISSN 1675-4077

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Official URL: https://mar.uitm.edu.my/

Abstract

The study investigates the existence of earnings management practices by companies listed in the KLSE. Prior studies suggest that managers manage earnings to avoid reporting losses and earnings decreases. This study tests the effects of size and code of corporate governance on the incidence of managing earnings to avoid reporting earnings decrease and losses by Malaysian companies. Using the discontinuity test and level of smoothness
test around zero reported earnings, this study finds a significant incidence of
companies reporting positive earnings while avoiding showing losses. This
finding is consistent with that of previous studies. The study also provides
evidence that earnings management practices were reduced following the
introduction of a code of corporate governance by the Malaysian government
in 2001.

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Item Type: Article
Creators:
Creators
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Mohd Iskandar, Takiah
UNSPECIFIED
Rahmat, Mohd Mohid
UNSPECIFIED
Subjects: H Social Sciences > HG Finance > Financial management. Business finance. Corporation finance > Earnings management > Malaysia
H Social Sciences > HG Finance > Investment, capital formation, speculation > Stock exchanges. Insider trading in securities > Malaysia > Kuala Lumpur. KLSE
Divisions: Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI)
Journal or Publication Title: Malaysian Accounting Review
UiTM Journal Collections: UiTM Journal > Management & Accounting Review (MAR)
ISSN: 1675-4077
Volume: 4
Number: 1
Page Range: pp. 25-37
Official URL: https://mar.uitm.edu.my/
Item ID: 290
Uncontrolled Keywords: Earnings management, Malaysian listed companies, Kuala Lumpur Stock Exchange (KLSE)
URI: https://ir.uitm.edu.my/id/eprint/290

ID Number

290

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