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Association between Board characteristics and earnings quality: Malaysian Evidence

The present study examines the relationship between board characteristics and earnings quality after the amendment of the Malaysian Code on Corporate Governance in 2007. Using heteroskedasticity-corrected least square regressions upon a sample of Malaysian firms listed in 2008 and 2009, the study fi...

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Main Authors: Redhwan Ahmed AL-Dhamari,, Ku Nor Izah Ku Ismail,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2014
Online Access:http://journalarticle.ukm.my/8368/1/7765-20216-1-PB.pdf
http://journalarticle.ukm.my/8368/
http://ejournal.ukm.my/pengurusan/index
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spelling my-ukm.journal.83682016-12-14T06:47:03Z http://journalarticle.ukm.my/8368/ Association between Board characteristics and earnings quality: Malaysian Evidence Redhwan Ahmed AL-Dhamari, Ku Nor Izah Ku Ismail, The present study examines the relationship between board characteristics and earnings quality after the amendment of the Malaysian Code on Corporate Governance in 2007. Using heteroskedasticity-corrected least square regressions upon a sample of Malaysian firms listed in 2008 and 2009, the study finds that the quality of earnings is higher among firms with independent chairmen than among those firms with non-independent chairmen. However, in contradiction to the expectations of the study, inconclusive results are found concerning board independence. The results also demonstrate that investors do not perceive board size as a good indicator of quality earnings. The findings imply that investors continue to have reservations regarding the ability of boards to enhance the quality of earnings, although efforts have been made to reform corporate governance following the Asian financial crisis. The study serves as a signal to policy makers to evaluate the importance of board mechanisms when enhancing financial reporting quality in emerging markets. Penerbit Universiti Kebangsaan Malaysia 2014 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/8368/1/7765-20216-1-PB.pdf Redhwan Ahmed AL-Dhamari, and Ku Nor Izah Ku Ismail, (2014) Association between Board characteristics and earnings quality: Malaysian Evidence. Jurnal Pengurusan, 41 . pp. 43-55. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/index
institution Universiti Kebangsaan Malaysia
building Perpustakaan Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description The present study examines the relationship between board characteristics and earnings quality after the amendment of the Malaysian Code on Corporate Governance in 2007. Using heteroskedasticity-corrected least square regressions upon a sample of Malaysian firms listed in 2008 and 2009, the study finds that the quality of earnings is higher among firms with independent chairmen than among those firms with non-independent chairmen. However, in contradiction to the expectations of the study, inconclusive results are found concerning board independence. The results also demonstrate that investors do not perceive board size as a good indicator of quality earnings. The findings imply that investors continue to have reservations regarding the ability of boards to enhance the quality of earnings, although efforts have been made to reform corporate governance following the Asian financial crisis. The study serves as a signal to policy makers to evaluate the importance of board mechanisms when enhancing financial reporting quality in emerging markets.
format Article
author Redhwan Ahmed AL-Dhamari,
Ku Nor Izah Ku Ismail,
spellingShingle Redhwan Ahmed AL-Dhamari,
Ku Nor Izah Ku Ismail,
Association between Board characteristics and earnings quality: Malaysian Evidence
author_facet Redhwan Ahmed AL-Dhamari,
Ku Nor Izah Ku Ismail,
author_sort Redhwan Ahmed AL-Dhamari,
title Association between Board characteristics and earnings quality: Malaysian Evidence
title_short Association between Board characteristics and earnings quality: Malaysian Evidence
title_full Association between Board characteristics and earnings quality: Malaysian Evidence
title_fullStr Association between Board characteristics and earnings quality: Malaysian Evidence
title_full_unstemmed Association between Board characteristics and earnings quality: Malaysian Evidence
title_sort association between board characteristics and earnings quality: malaysian evidence
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2014
url http://journalarticle.ukm.my/8368/1/7765-20216-1-PB.pdf
http://journalarticle.ukm.my/8368/
http://ejournal.ukm.my/pengurusan/index
_version_ 1643737455147352064
score 13.211869

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