Download or read book The Impact of Government linked Investment Companies in Malaysia on the Performance and Earnings management of Their Portfolio Companies written by Amiruddin Bin-Muhamed and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Governance and Earnings Management in Malaysian Government Linked Companies written by Muslim Har Sani Mohamad and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: As the major shareholder, in 2004, the Malaysian Government embarked on the transformation initiative of the Government Linked Companies (GLCs). One of the main initiatives was to enhance board effectiveness through its Green Book. Soon after, the progress performance review revealed that the GLCs reported improved earnings. Such drastic performance turnarounds triggered the question as to whether earnings quality is at stake. The purpose of this paper is to examine the impact of the tightening of corporate governance mechanisms on earnings management (EM) activities of the GLCs. The earnings data for two periods (pre- and post-transformation) were collected and tested to determine whether the GLCs experienced any improvement of board monitoring role in curbing EM activities in the post-transformation period. The main findings show that there is an increase of EM activities in the post-transformation policy. Furthermore, the study also reveals that none of the corporate governance mechanisms has much impact on curbing activities, except for board meetings and leadership structure in the post-transformation period. The board meetings and separation of chairman and chief executive officers in the companies were shown to only have a negative impact on EM activities in the post-transformation period. Although the study has shown a positive preliminary impact from tightening the corporate governance of the GLCs, weak earnings quality might undermine the efforts to sustain such a transformation. The paper contributes to the limited body of literature concerning the impact of corporate governance on earnings management by examining such impact using Government Linked Companies in Malaysia after introducing the transformation programme.
Download or read book The Impact of Government Investment Organizations in Malaysia on the Performance of Their Portfolio Companies written by Amiruddin Bin Muhamed and published by . This book was released on 2014 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: English Abstract: Research into the impact of government ownership on the financial performance of listed companies typically assumes the government to be a monolithic entity and fails to consider that government ownership rights are administered by different types of government organizations. Exploring the financial performance of government controlled listed companies we find that in Malaysia the impact of government ownership varies depending on the type of organization which manages the government's ownership stakes. Taking into account golden Share provisions as well as the presence of senior civil servants and of politicians on boards of Directors, we find that firms controlled by investment organizations under federal government control tend to outperform firms controlled by regional governments' investment organizations.
Download or read book Corporate Govenance Performance and Earnings Management in Listed Government Linked Companies GLCs written by Fekri Ali Mohammed Shawtari and published by . This book was released on 2009 with total page 342 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Governance Mechanisms and Earnings Management in Malaysian Government Linked Companies written by Muslim Har Sani Mohamad and published by . This book was released on 2010 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Government Ownership and Performance written by Rubi Ahmad and published by . This book was released on 2013 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The relationship between ownership structure and company performance has been issue of interest among academics, investors and policy makers because of key issue in understanding the effectiveness of alternative governance system in which government ownership serve as a control mechanism. Therefore, this paper examines the impact of an alternative ownership/control structure of corporate governance on firm performance among government linked companied (GLCs) and Non-GLC in Malaysia. It is believed that government ownership serve as a monitoring device that lead to better company performance after controlling company specific characteristics. We used Tobin's Q as market performance measure while ROA is to determine accounting performance measure. This study is based on a sample of 210 firms over a period from 1995 to 2005. We use panel based regression approach to determine the impact of ownership mechanism on firm's performance. Findings appear to suggest that there is a significant impact of government ownership on company performance after controlling for company specific characteristics such as company size, non-duality, leverage and growth. The finding is off significant for investors and policy marker which will serve as a guiding for better investment decision.
Download or read book An Investigation on the Audit Committee s Effectiveness written by Nurul Nazlia Jamil and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Financial reporting quality has been under scrutiny especially after the collapse of major companies. The main objective of this study is to investigate the audit committee's effectiveness on the financial reporting quality among the Malaysian GLCs. In particular, the study examined the impact of audit committee characteristics (independence, size, frequency meeting and financial expertise) on earnings management in periods prior to and following the transformation program (2003-2009). As at 31 December 2010, there were 33 public-listed companies categorized as Government-Linked Companies (GLC Transformation Policy, 2010) and there were 20 firms that have complete data which resulted in the total number of firm-year observations to 120 for six years (year 2003-2009). Results show that the magnitude of earnings management as proxy of financial reporting quality is influenced by the audit committee independence. However, no evidence was found to support the effect of audit committee size, meetings and expertise on the magnitude of earnings management. Agency theory and resource dependence theory were applied to explain audit committee, as a monitoring mechanism as well as reducing agency costs via gaining competitive advantage in knowledge, skills, and expertise towards financial reporting quality. However, contrary to expectation, the theories were not fully supported hence there is a need for alternative theory that can explained the relationship further. This study is different from prior studies, in that it makes a significant contribution towards enhancing one's knowledge in the interacting role of audit committee's effectiveness and financial reporting quality subsequent to the transformation program in GLCs. The study is important as it provides additional knowledge about the impact of audit committee's effectiveness on reducing the earnings management, and assist practitioners, policymakers and regulators such as Malaysian Institute of Accountants, Securities Commission and government to determine ways to enhance audit committee's effectiveness and improve the financial reporting of GLCs, as well as improving the quality of the accounting profession.
Download or read book Performance of Listed Government linked Companies in Malaysia and Singapore Using Portfolio Optimization Approach written by Chun-Teck Lye and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Earnings Management and Forecast Accuracy written by Norashikin Ismail and published by . This book was released on 2007 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis explores the link between earnings management and forecast accuracy in the context of Malaysian IPO's following a revision of the regulation on earnings forecast disclosure made in 1996. The study involves three different stages. The first stage examines the accuracy of earnings forecasts contained in the IPO prospectuses of Malaysian companies seeking listing from 1996 to December 2002. The second stage of study provides evidence of positive discretionary accrual in financial statements of IPO issuers in the year of IPO, and in the 3 year period following the IPO. Finally, a correlation study examines the link between earnings management and forecast error and other variables representing unexpected change in economic condition and company specific characteristics. The results from the first stage of study indicate that Malaysian IPO companies on average have a negative forecast error, indicating positive bias in their forecast. Multivariate results indicate that regulation of earnings forecast disclosure has no significant impact on accuracy but that economic condition, management optimism, and auditor reputation have. The second stage, studying earnings management on a sample of IPO 1996,1998 and 2000 regulated companies, provides evidence consistent with the prediction that managers of Malaysian IPO companies manage earnings upwards in the year of forecast issuance, or in the year the company make their forecasts. The study also provides evidence that managers continue to manage earnings during the period after listing, so long as there is continuing regulatory scrutiny. The findings of the final stage of study provide evidence of a significant association between earnings management and the relative size and direction of forecast error, after controlling for other expected associations. The regression results reveal that earnings management of Malaysian IPO companies is associated with forecast error, the changes in economic condition represented by a recovery and crisis period, company age and management ownership. The study makes a contribution in terms of understanding the nature of earnings management at the time of an IPO and in particular providing empirical evidence on the link between the forecast error and the extent of earnings management. The result shows that managers appear to manage earnings upwards significantly during the economic crisis and recovery period in order to match or come closer to the forecast made in the prospectus. In a highly concentrated ownership, the actions of IPO managers appear to be contrary to the assumption of agency theory. It is speculated that managers of IPO companies are managing their earnings upwards and reporting towards meeting their forecasts in order to manage their legitimacy and to establish their company's good reputation. This is because, as newly listed companies, they are under close market scrutiny and are under great pressure to meet the projections made to investors.
Download or read book The Impact of Company and Board Characteristics on Earnings Management written by Fatimah Hanim Abdul Rauf and published by . This book was released on 2012 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Ethics and Taxation written by Robert F. van Brederode and published by Springer Nature. This book was released on 2019-11-02 with total page 412 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book does not present a single philosophical approach to taxation and ethics, but instead demonstrates the divergence in opinions and approaches using a framework consisting of three broad categories: tax policy and design of tax law; ethical standards for tax advisors and taxpayers; and tax law enforcement. In turn, the book addresses a number of moral questions in connection with taxes, concerning such topics as: • the nature of government • the relation between government (the state) and its subjects or citizens • the moral justification of taxes• the link between property and taxation• tax planning, evasion and avoidance • corporate social responsibility• the use of coercive power in collecting taxes and enforcing tax laws • ethical standards for tax advisors • tax payer rights • the balance between individual rights to liberty and privacy, and government compliance and information requirements • the moral justification underlying the efforts of legislators and policymakers to restructure society and steer individual and corporate behavior.
Download or read book Directors Remuneration written by Study Group on Directors' Remuneration and published by . This book was released on 1995 with total page 82 pages. Available in PDF, EPUB and Kindle. Book excerpt: A complete copy of the Report including the Code of Best Practice. The Study Group on Director's Remuneration was set up on the initiative of the CBI in January 1995 in response to public and shareholder concerns about pay and other remuneration of company directors in the United Kingdom. The report covers code of best practice, main action points, remuneration committees, disclosure, remuneration policy, service contracts and compensation, privatised utilities.
Download or read book Powering the Digital Economy Opportunities and Risks of Artificial Intelligence in Finance written by El Bachir Boukherouaa and published by International Monetary Fund. This book was released on 2021-10-22 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper discusses the impact of the rapid adoption of artificial intelligence (AI) and machine learning (ML) in the financial sector. It highlights the benefits these technologies bring in terms of financial deepening and efficiency, while raising concerns about its potential in widening the digital divide between advanced and developing economies. The paper advances the discussion on the impact of this technology by distilling and categorizing the unique risks that it could pose to the integrity and stability of the financial system, policy challenges, and potential regulatory approaches. The evolving nature of this technology and its application in finance means that the full extent of its strengths and weaknesses is yet to be fully understood. Given the risk of unexpected pitfalls, countries will need to strengthen prudential oversight.
Download or read book Venture Capital and Private Equity Contracting written by Douglas J. Cumming and published by Academic Press. This book was released on 2013-08-21 with total page 781 pages. Available in PDF, EPUB and Kindle. Book excerpt: Other books present corporate finance approaches to the venture capital and private equity industry, but many key decisions require an understanding of the ways that law and economics work together. This revised and updated 2e offers broad perspectives and principles not found in other course books, enabling readers to deduce the economic implications of specific contract terms. This approach avoids the common pitfalls of implying that contractual terms apply equally to firms in any industry anywhere in the world. In the 2e, datasets from over 40 countries are used to analyze and consider limited partnership contracts, compensation agreements, and differences in the structure of limited partnership venture capital funds, corporate venture capital funds, and government venture capital funds. There is also an in-depth study of contracts between different types of venture capital funds and entrepreneurial firms, including security design, and detailed cash flow, control and veto rights. The implications of such contracts for value-added effort and for performance are examined with reference to data from an international perspective. With seven new or completely revised chapters covering a range of topics from Fund Size and Diseconomies of Scale to Fundraising and Regulation, this new edition will be essential for financial and legal students and researchers considering international venture capital and private equity. - An analysis of the structure and governance features of venture capital contracts - In-depth study of contracts between different types of venture capital funds and entrepreneurial firms - Presents international datasets from over 40 countries around the world - Additional references on a companion website - Contains sample contracts, including limited partnership agreements, term sheets, shareholder agreements, and subscription agreements
Download or read book Corporate Payout Policy written by Harry DeAngelo and published by Now Publishers Inc. This book was released on 2009 with total page 215 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate Payout Policy synthesizes the academic research on payout policy and explains "how much, when, and how". That is (i) the overall value of payouts over the life of the enterprise, (ii) the time profile of a firm's payouts across periods, and (iii) the form of those payouts. The authors conclude that today's theory does a good job of explaining the general features of corporate payout policies, but some important gaps remain. So while our emphasis is to clarify "what we know" about payout policy, the authors also identify a number of interesting unresolved questions for future research. Corporate Payout Policy discusses potential influences on corporate payout policy including managerial use of payouts to signal future earnings to outside investors, individuals' behavioral biases that lead to sentiment-based demands for distributions, the desire of large block stockholders to maintain corporate control, and personal tax incentives to defer payouts. The authors highlight four important "carry-away" points: the literature's focus on whether repurchases will (or should) drive out dividends is misplaced because it implicitly assumes that a single payout vehicle is optimal; extant empirical evidence is strongly incompatible with the notion that the primary purpose of dividends is to signal managers' views of future earnings to outside investors; over-confidence on the part of managers is potentially a first-order determinant of payout policy because it induces them to over-retain resources to invest in dubious projects and so behavioral biases may, in fact, turn out to be more important than agency costs in explaining why investors pressure firms to accelerate payouts; the influence of controlling stockholders on payout policy --- particularly in non-U.S. firms, where controlling stockholders are common --- is a promising area for future research. Corporate Payout Policy is required reading for both researchers and practitioners interested in understanding this central topic in corporate finance and governance.
Download or read book Minister of Finance Incorporated written by Edmund Terence Gomez and published by Springer. This book was released on 2017-07-24 with total page 279 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a study of Malaysia’s new political economy, with a focus on ownership and control of the corporate sector. It offers a pioneering assessment of government-linked investment companies (GLICs), a type of state-owned institution that has long prevailed in the corporate sector but has not been analysed. Malaysia’s history of government-business ties is unique, while the nature of the nexuses between the state and the corporate sector has undergone major transitions. Corporate power has shifted from the hands of foreign firms to the state to the ruling party, and well-connected businessmen, and back to the state. Corporate wealth is now heavily situated in the leading publicly-listed government-linked companies (GLCs), controlled through block shareholdings by a mere seven GLICs under the jurisdiction of the Minister of Finance. To indicate why these GLICs are important actors in Corporate Malaysia, this study provides a deep assessment of their ownership and control of Bursa Malaysia’s top 100 publicly-listed enterprises.
Download or read book Financial Sector Crisis and Restructuring written by Carl-Johan Lindgren and published by . This book was released on 1999 with total page 103 pages. Available in PDF, EPUB and Kindle. Book excerpt: An IMF paper reviewing the policy responses of Indonesia, Korea and Thailand to the 1997 Asian crisis, comparing the actions of these three countries with those of Malaysia and the Philippines. Although all judgements are still tentative, important lessons can be learned from the experiences of the last two years.
