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Real activities management, financial distress and corporate governance: Malaysian evidence / Mojtaba Shayan Nia

Positive accounting theory predicts that firms approaching deteriorating financial performance may make income-increasing accounting choices. The firms manipulate earnings upward in an attempt to ride out what is probably deemed by the management as a temporary bad period. The primary objective of t...

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Main Author: Nia, Mojtaba Shayan
Format: Book Section
Language:English
Published: Institute of Graduate Studies, UiTM 2017
Subjects:
Malaysia
Online Access:http://ir.uitm.edu.my/id/eprint/19777/1/ABS_MOJTABA%20SHAYAN%20NIA%20TDRA%20VOL%2011%20IGS%2017.pdf
http://ir.uitm.edu.my/id/eprint/19777/
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spelling my.uitm.ir.197772018-06-07T07:44:51Z http://ir.uitm.edu.my/id/eprint/19777/ Real activities management, financial distress and corporate governance: Malaysian evidence / Mojtaba Shayan Nia Nia, Mojtaba Shayan Malaysia Positive accounting theory predicts that firms approaching deteriorating financial performance may make income-increasing accounting choices. The firms manipulate earnings upward in an attempt to ride out what is probably deemed by the management as a temporary bad period. The primary objective of this thesis is to examine real activities based earnings management among distressed Malaysian firms over the years, covering both prior and after being officially designated as “PN17 firms”. Additionally, the study aims to investigate whether real activities management techniques among distressed Malaysian firms change across time and industries in which the firms operate. The study also aims to examine the moderating effects of corporate governance on real activities management. The study detects real activities manipulation by investigating patterns in cash flow from operations (CFO), discretionary expenses, and production costs. This study uses the Roychowdhury (2006) models to derive the normal level of CFO, discretionary expenses and production costs. Deviations from the normal levels are termed abnormal CFO, abnormal discretionary expenses and abnormal production costs. In addition, a review of the corporate governance literature revealed several attributes that may affect the degree of real activities management, simply because their role in enhancing monitoring mechanism… Institute of Graduate Studies, UiTM 2017 Book Section PeerReviewed text en http://ir.uitm.edu.my/id/eprint/19777/1/ABS_MOJTABA%20SHAYAN%20NIA%20TDRA%20VOL%2011%20IGS%2017.pdf Nia, Mojtaba Shayan (2017) Real activities management, financial distress and corporate governance: Malaysian evidence / Mojtaba Shayan Nia. In: The Doctoral Research Abstracts. IGS Biannual Publication, 11 (11). Institute of Graduate Studies, UiTM, Shah Alam.
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
topic Malaysia
spellingShingle Malaysia
Nia, Mojtaba Shayan
Real activities management, financial distress and corporate governance: Malaysian evidence / Mojtaba Shayan Nia
description Positive accounting theory predicts that firms approaching deteriorating financial performance may make income-increasing accounting choices. The firms manipulate earnings upward in an attempt to ride out what is probably deemed by the management as a temporary bad period. The primary objective of this thesis is to examine real activities based earnings management among distressed Malaysian firms over the years, covering both prior and after being officially designated as “PN17 firms”. Additionally, the study aims to investigate whether real activities management techniques among distressed Malaysian firms change across time and industries in which the firms operate. The study also aims to examine the moderating effects of corporate governance on real activities management. The study detects real activities manipulation by investigating patterns in cash flow from operations (CFO), discretionary expenses, and production costs. This study uses the Roychowdhury (2006) models to derive the normal level of CFO, discretionary expenses and production costs. Deviations from the normal levels are termed abnormal CFO, abnormal discretionary expenses and abnormal production costs. In addition, a review of the corporate governance literature revealed several attributes that may affect the degree of real activities management, simply because their role in enhancing monitoring mechanism…
format Book Section
author Nia, Mojtaba Shayan
author_facet Nia, Mojtaba Shayan
author_sort Nia, Mojtaba Shayan
title Real activities management, financial distress and corporate governance: Malaysian evidence / Mojtaba Shayan Nia
title_short Real activities management, financial distress and corporate governance: Malaysian evidence / Mojtaba Shayan Nia
title_full Real activities management, financial distress and corporate governance: Malaysian evidence / Mojtaba Shayan Nia
title_fullStr Real activities management, financial distress and corporate governance: Malaysian evidence / Mojtaba Shayan Nia
title_full_unstemmed Real activities management, financial distress and corporate governance: Malaysian evidence / Mojtaba Shayan Nia
title_sort real activities management, financial distress and corporate governance: malaysian evidence / mojtaba shayan nia
publisher Institute of Graduate Studies, UiTM
publishDate 2017
url http://ir.uitm.edu.my/id/eprint/19777/1/ABS_MOJTABA%20SHAYAN%20NIA%20TDRA%20VOL%2011%20IGS%2017.pdf
http://ir.uitm.edu.my/id/eprint/19777/
_version_ 1685649257853353984
score 13.226497

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