UUM ETD | Universiti Utara Malaysian Electronic Theses and Dissertation
FAQs | Feedback | Search Tips | Sitemap

IFRS convergence and earnings management: Malaysian evidence

Khoo, Chun Peng (2013) IFRS convergence and earnings management: Malaysian evidence. Masters thesis, Universiti Utara Malaysia.

[img] Text
s811883.pdf
Restricted to Registered users only

Download (1MB)
[img]
Preview
Text
s811883_abstract.pdf

Download (729kB) | Preview

Abstract

The study sheds light on whether IFRS convergence would reduce the extent of earnings management, which in turns delivers higher quality of financial statement information to its users. Besides, the study also investigates the explanatory factors of earnings management before and after IFRS convergence. The sample of the study consists of 231 Malaysian listed companies. The time frame of the study is year 2005 (i.e., pre-IFRS convergence) and year 2006 (i.e., post-IFRS convergence). Kothari’s discretionary accruals model is used in the study to measure the extent of earnings management. By examining the extent of earnings management in two different periods (i.e., pre-IFRS convergence & post-IFRS convergence), the study finds that IFRS convergence reduces the extent of earnings management among Malaysian listed companies. In addition, the findings reveal that the explanatory factors of earnings management remain unchanged after IFRS convergence. The findings report that the proportion of non-political connected directors on boards is significant positively associated with earnings management before and after IFRS convergence. In addition, the study also finds that the proportion of independent external directors on board, board size, audit quality, foreign stock market listing and ethnicity do not have any association with earnings management before and after IFRS convergence. Among the control variables, the study reveals that company size is significant negatively associated with earnings management before IFRS convergence. Besides, the study also reports that profitability is significant positively associated with earnings management before and after IFRS convergence. This study has implications for regulatory bodies, tasking them to look into the effects of IFRS convergence on the extent of earnings management, particularly in an Asian country–Malaysia

Item Type: Thesis (Masters)
Subjects: H Social Sciences > HF Commerce. > HF5601-5689 Accounting
Divisions: Othman Yeop Abdullah Graduate School of Business
Depositing User: Mr. Badrulsaman Hamid
Date Deposited: 22 Oct 2015 01:10
Last Modified: 17 Apr 2016 07:38
URI: http://etd.uum.edu.my/id/eprint/5063

Actions (login required)

View Item View Item