Cover Image

Board financial experience and efficiency-based earnings management in pre- and post-international financial reporting standards

The study examines whether the board of directors with financial experience can effectively constrain earnings management pre- and post-International Financial Reporting Standards (IFRS). For a large balanced panel dataset of Taiwanese electronics companies over 2007–2017, we replace returns on asse...

Full description

Saved in:
Bibliographic Details
Main Authors: Kweh, Qian Long, Nourani, Mohammad, Lu, Wen-Min, Ting, Irene Wei Kiong
Format: Article
Language:English
Published: World Scientific Publishing Co Pte Ltd 2024
Subjects:
HG Finance
Online Access:http://umpir.ump.edu.my/id/eprint/43397/1/Kweh%20et%20al.%20%282024%29_SER_in%20press.pdf
http://umpir.ump.edu.my/id/eprint/43397/
https://doi.org/10.1142/S0217590824500280
https://doi.org/10.1142/S0217590824500280
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.ump.umpir.43397
record_format eprints
spelling my.ump.umpir.433972025-01-03T02:08:11Z http://umpir.ump.edu.my/id/eprint/43397/ Board financial experience and efficiency-based earnings management in pre- and post-international financial reporting standards Kweh, Qian Long Nourani, Mohammad Lu, Wen-Min Ting, Irene Wei Kiong HG Finance The study examines whether the board of directors with financial experience can effectively constrain earnings management pre- and post-International Financial Reporting Standards (IFRS). For a large balanced panel dataset of Taiwanese electronics companies over 2007–2017, we replace returns on assets in an augmented modified Jones model with efficiency scores derived using data envelopment analysis (DEA). Using DEA as an innovative adaptation in the accrual-based earnings management model, we aim to provide an accurate measure of earnings management. The results of our panel estimated generalized least square (EGLS) regression models, which account for heteroskedasticity and auto-correlation problems, indicate that the proportion of board of directors with financial and/or accounting experiences reduces earnings management pre-IFRS. However, their ability turns weaker post-IFRS. Overall, this study thus not only has important theoretical significance in that a board of directors with financial experience might and might not curb earnings management but also has an important practical contribution to decision-makers in companies regarding the effectiveness of board financial experiences in the IFRS era. World Scientific Publishing Co Pte Ltd 2024-06-15 Article PeerReviewed pdf en http://umpir.ump.edu.my/id/eprint/43397/1/Kweh%20et%20al.%20%282024%29_SER_in%20press.pdf Kweh, Qian Long and Nourani, Mohammad and Lu, Wen-Min and Ting, Irene Wei Kiong (2024) Board financial experience and efficiency-based earnings management in pre- and post-international financial reporting standards. Singapore Economic Review. pp. 1-26. ISSN 0217-5908. (In Press / Online First) (In Press / Online First) https://doi.org/10.1142/S0217590824500280 https://doi.org/10.1142/S0217590824500280
institution Universiti Malaysia Pahang Al-Sultan Abdullah
building UMPSA Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Pahang Al-Sultan Abdullah
content_source UMPSA Institutional Repository
url_provider http://umpir.ump.edu.my/
language English
topic HG Finance
spellingShingle HG Finance
Kweh, Qian Long
Nourani, Mohammad
Lu, Wen-Min
Ting, Irene Wei Kiong
Board financial experience and efficiency-based earnings management in pre- and post-international financial reporting standards
description The study examines whether the board of directors with financial experience can effectively constrain earnings management pre- and post-International Financial Reporting Standards (IFRS). For a large balanced panel dataset of Taiwanese electronics companies over 2007–2017, we replace returns on assets in an augmented modified Jones model with efficiency scores derived using data envelopment analysis (DEA). Using DEA as an innovative adaptation in the accrual-based earnings management model, we aim to provide an accurate measure of earnings management. The results of our panel estimated generalized least square (EGLS) regression models, which account for heteroskedasticity and auto-correlation problems, indicate that the proportion of board of directors with financial and/or accounting experiences reduces earnings management pre-IFRS. However, their ability turns weaker post-IFRS. Overall, this study thus not only has important theoretical significance in that a board of directors with financial experience might and might not curb earnings management but also has an important practical contribution to decision-makers in companies regarding the effectiveness of board financial experiences in the IFRS era.
format Article
author Kweh, Qian Long
Nourani, Mohammad
Lu, Wen-Min
Ting, Irene Wei Kiong
author_facet Kweh, Qian Long
Nourani, Mohammad
Lu, Wen-Min
Ting, Irene Wei Kiong
author_sort Kweh, Qian Long
title Board financial experience and efficiency-based earnings management in pre- and post-international financial reporting standards
title_short Board financial experience and efficiency-based earnings management in pre- and post-international financial reporting standards
title_full Board financial experience and efficiency-based earnings management in pre- and post-international financial reporting standards
title_fullStr Board financial experience and efficiency-based earnings management in pre- and post-international financial reporting standards
title_full_unstemmed Board financial experience and efficiency-based earnings management in pre- and post-international financial reporting standards
title_sort board financial experience and efficiency-based earnings management in pre- and post-international financial reporting standards
publisher World Scientific Publishing Co Pte Ltd
publishDate 2024
url http://umpir.ump.edu.my/id/eprint/43397/1/Kweh%20et%20al.%20%282024%29_SER_in%20press.pdf
http://umpir.ump.edu.my/id/eprint/43397/
https://doi.org/10.1142/S0217590824500280
https://doi.org/10.1142/S0217590824500280
_version_ 1822924900116987904
score 13.232432

Similar Items