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 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 Corporate Governance Firms Performance and Earnings Management written by Mostaq M. Hussain and published by . This book was released on 2015 with total page 15 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the effect of Corporate Governance (CG) on firms' performance and earnings management. Data has been collected from German companies listed on Frankfurt stock exchange. Board characteristics are used as the proxy for it, while performance is measured using the return on equity and the return on assets ratios. Earnings management is measured using the magnitude of accruals in a firm. Three OLS regression models are used to test the research hypotheses. The findings of the study reveal that CG has significant effect on the performance of a firm as well as on its earnings management practices. This study also finds that some characteristics of board significantly affect firms' performance and earnings management.
Download or read book Corporate Governance and Earnings Management written by Sonda Marrakchi Chtourou and published by . This book was released on 2003 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study investigates whether a firm's corporate governance practices have an effect on the quality of its publicly released financial information. In particular, we examine the relationship between audit committee and board of directors characteristics and the extent of corporate earnings management as measured by the level of positive and negative discretionary accruals. Using two groups of US firms, one with relatively high and one with relatively low levels of discretionary accruals in the year 1996, we find that earnings management is significantly associated with some of the governance practices by audit committees and boards of directors. For audit committees, income increasing earnings management is negatively associated with a larger proportion of outside members who are not managers in other firms, a clear mandate for overseeing both the financial statements and the external audit, and a committee composed only of independent directors that meets more than twice a year. We also find that short-term stocks options held by non-executive committee members are associated with income increasing earnings management. Income decreasing earnings management is negatively associated with the presence of at least a member with financial expertise and a clear mandate for overseeing both the financial statements and the external audit.For the board of directors, we find less income increasing earnings management in firms whose outside board members have experience as board members with the firm and with other firms. We also find that larger board, the importance of the ownership stakes in the firm held by non-executive directors, and experience as board members seems to reduce income decreasing earnings management.Our results provide evidence that effective boards and audit committees constrain earnings management activities. These findings have implications for regulators, such as the Securities and Exchange Commission (SEC), as they attempt to supervise firms whose financial reporting is in the gray area between legitimacy and outright fraud and where earnings statements reflect the desires of management rather than the underlying financial performance of the company, as pointed out by the Blue Ribbon Committee (1999).
Download or read book How Corporate Governance Mitigates the Abuse of Earnings Management written by 湯惠雯 and published by . This book was released on 2006 with total page 206 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Performance expectation Ratcheting Corporate Governance and Earnings Management written by Feng Tian and published by . This book was released on 2008 with total page 210 pages. Available in PDF, EPUB and Kindle. Book excerpt: Asymmetric ratcheting means that a favorable performance variance (i.e., positive unexpected performance) in the prior year leads to a greater absolute change in the current year's performance expectation than does an unfavorable performance variance of the same magnitude. This study finds that asymmetric performance-expectation ratcheting is prevalent across publicly traded firms. It also finds that the extent of performance-expectation ratcheting is positively associated with the strength of external governance (i.e., shareholder rights). This paper also shows that such ratcheting affects earnings management decisions. Specifically, when a firm performs well in interim quarters (i.e., the first three fiscal quarters), managers facing intensive ratcheting attempt to decrease the reported earnings of the fourth quarter to build more "reserves" and rein in the increase of expectations for the future, compared to managers under little or no ratcheting. When underlying performance exceeds current performance expectations, managers under intensive ratcheting engage in income-decreasing accruals and real activities manipulation (i.e., sales manipulation, changes in discretionary expenses including R&D and SG&A, and underproduction). In addition, when there is a temporary earnings increase, managers facing intensive ratcheting tend to use real activities to manage earnings downward. The results are robust after controlling for various factors.
Download or read book Beyond Governance written by Martin Fahy and published by John Wiley & Sons. This book was released on 2005-04-08 with total page 336 pages. Available in PDF, EPUB and Kindle. Book excerpt: Following a series of corporate scandals, legislators have company executives in their sights, and are arming themselves with ever-greater regulatory firepower. All agree that good governance is essential - but must not be allowed to stifle business performance. Beyond Governance develops the concept of Enterprise Governance, an emerging framework which unites Performance, Conformance and Corporate Responsibility and shows how addressing all of these areas in a concerted, coordinated fashion will deliver value to the organisation and its stakeholders. In particular, it focuses on the skills, processes and systems that are required to deliver excellence in each of these areas, giving readers a practical insight into the issues and an understanding of best practice in each area. Many firms are rethinking their finance activities in the light of e-commerce, shared service centres, business intelligence technology and cost pressures. Beyond Governance explores the challenge of building a modern, flexible finance function, describing the emerging role of the new CFO and how finance professionals should respond to this new business environment.
Download or read book Corporate Governance in Government Linked Companies Control Driven Or Performance Driven written by Tai Ma and published by . This book was released on 2007 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study the effect of the government transition on firm performance and board composition of government-linked companies (GLCs) and explore the motivations of board restructuring of GLCs. Specifically, we examine two questions: (1) what is the motivation of board restructuring, and (2) whether the change in the board composition affects the subsequent firm performance. The empirical results indicate that the policy factor is the key determinant in the board re-election of GLCs. The motivation of board restructuring after the powershift is mainly for control and spoils purposes rather than performance enhancement, which may explain why the market reacts negatively to the board restructuring announcement in GLCs. Finally, none of the board restructuring factors can explain the change in firm performance after the powershift, the only significant factor is the policy factor.
Download or read book Handbook on Emerging Issues in Corporate Governance written by Alireza Tourani-Rad and published by World Scientific. This book was released on 2011 with total page 316 pages. Available in PDF, EPUB and Kindle. Book excerpt: The book highlights emerging topics in key areas of corporate governance with special emphasis on traditionally unexplored issues. It also aims to stimulate thinking and debate on vital aspects of practice and approaches to corporate governance. The topics covered in this book deal with timely subjects, written by eminent academics and renowned professionals with outstanding expertise in their respective fields, who bring to fore the latest theories and provide an up-to-date overview of the extant literature on each topic. More importantly, they draw readers attention to implications for future research and developments. The book not only contributes to the academic literature but also improves the decision making of regulators and investors.
Download or read book Corporate Governance and Accruals Earnings Management written by Leonidas C. Doukakis and published by . This book was released on 2014 with total page 49 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the association between corporate governance and accruals earnings management using a Corporate Governance Index (CGI) consisting of 55 individual corporate governance measures. Prior literature has focused primarily on certain individual corporate governance measures, overlooking the multidimensional character of corporate governance. Based on a sample of firms listed on the Athens, Milan and Madrid Stock Exchanges, we find an inverse relationship between corporate governance and earnings management. Corporate governance provisions seem to constrain the tendency of management to manage earnings leading to higher credibility for financial statements. Additional tests suggest that the negative relationship holds for large and middle capitalization firms, but not for the small capitalization sample. In addition, corporate governance provisions limit upwards but not downwards earnings management. This study emphasizes the multilevel character of corporate governance and suggests the usage of comprehensive measures of corporate governance in the academic research. This study also stresses the importance of introducing corporate governance mechanisms in order to ensure the integrity of the financial reporting process. Practitioners are expected to evaluate the corporate governance provisions that each firm has put in place while policy makers are expected to mandate the application of a wide range of corporate governance mechanisms.
Download or read book Earnings Management and Corporate Governance in Family Controlled Companies written by Sasson Bar-Yosef and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate governance literature advances the idea that certain aspects of board of directors' structure improve monitoring of managerial decisions. Among these is the managers' decision to manage earnings. Prior studies have shown that earnings management, in widely-held public companies, is less prevalent when there is a high level of board independence. However, there is less evidence on the effectiveness of board independence on earnings management in family-controlled companies. This issue is interesting in particular as such companies are susceptible to various types of agency concerns. It is the purpose of this study to shed light on the earnings management issue in family-controlled companies, characterized by a potentially low board independence environment. In this study, board independence is estimated by two parameters (i) proportion of independent directors on board, and (ii) lack of CEO/Board Chairman duality function, with special attention paid to the case where the CEO is a member of the controlling-family. Our empirical results provide evidence that, indeed, the impact of board independence on earnings management is weaker in family-controlled companies. The same effects are also found for the cases where the CEO is a member of the controlling-family, even though she is not also the Board Chairman.
Download or read book The Relationships Between Corporate Governance Mechanisms Earnings Management and Future Operating Performance written by Lara Mohammad Al Haddad and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Governance and Quality of Earnings written by Domenico Campa and published by LAP Lambert Academic Publishing. This book was released on 2014-03 with total page 264 pages. Available in PDF, EPUB and Kindle. Book excerpt: Well-known corporate scandals (e.g. Enron, Parmalat, Anglo Irish Bank, etc.), have moved corporate governance issues back into the limelight. Properly structured corporate governance is essential to ensure an organization's integrity and attract external capital at a reasonable cost. This book examines the efficacy of a firm's corporate governance and board structure in curbing earnings management and whether the effect changes in different legal contexts. This is done using a matched-pairs sample of companies listed in one common law country, the UK, and one code law country, Italy. It is reported that the strong corporate governance and board structure significantly reduce earnings management. The effect is stronger in Italy where these mechanisms act as an effective substitute for a weaker legal protection. The analysis of individual corporate governance attributes shows that institutional investor ownership is the most important feature of UK governance in terms of reducing earnings management, while the avoidance of CEO duality prevails in Italy. These results suggest that corporate governance is more important where the law cannot ensure an adequate investor protection.
Download or read book The Effect of Corporate Governance on Management s Real Earnings Management Decisions written by Yaser Youssif and published by . This book was released on 2016 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Governance and Financial Reporting Mechanisms of governance relevant to financial reporting written by Niamh Brennan and published by . This book was released on 2008 with total page 446 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Corporate Governance written by Tom Wixley and published by . This book was released on 2005 with total page 228 pages. Available in PDF, EPUB and Kindle. Book excerpt:
