The impact of earnings management on the performance of ASEAN banks
Southeast Asian financial liberalization policies have enthused both performance evaluation (a pro) and earnings management (a con). Using a sample of ASEAN commercial banks for the period 2007-2014, this study decomposes their banking performance into managerial and profitability efficiencies. An e...
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Elsevier
2023
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| _version_ | 1833413325668483072 |
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| author | Wu Y.-C. Wei Kiong Ting I. Lu W.-M. Nourani M. Kweh Q.L. |
| author2 | 57013722100 |
| author_facet | 57013722100 Wu Y.-C. Wei Kiong Ting I. Lu W.-M. Nourani M. Kweh Q.L. |
| author_sort | Wu Y.-C. |
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| collection | Institutional Repository |
| content_provider | Universiti Tenaga Nasional |
| content_source | UNITEN Institutional Repository |
| continent | Asia |
| country | Malaysia |
| description | Southeast Asian financial liberalization policies have enthused both performance evaluation (a pro) and earnings management (a con). Using a sample of ASEAN commercial banks for the period 2007-2014, this study decomposes their banking performance into managerial and profitability efficiencies. An efficiency analysis reveals that Singaporean banks obtained the highest overall and profitability efficiencies, while Bruneian banks had the lowest rates of banking performance. In the stage of managerial efficiency, the most inefficient banks are those of the Philippines, whereas the greatest level is related to Malaysian banks. A frontier projection analysis suggests that Singaporean banks and Malaysian banks are generally more efficient in managing their expenditures and long-term assets in generating income in the long run. With respect to the con, a regression analysis indicates that loan loss provisions are negatively related to banking performance. Overall, it is advisable that policy makers with oversight function should promote performance evaluation from a multidimensional perspective, and keep an eye on estimates of loan loss provisions at banks over years because increases/decreases in loan loss provisions mean decreases/increases in net income or return on assets. � 2015 Elsevier B.V. |
| format | Article |
| id | my.uniten.dspace-22855 |
| institution | Universiti Tenaga Nasional |
| publishDate | 2023 |
| publisher | Elsevier |
| record_format | dspace |
| spelling | my.uniten.dspace-228552023-05-29T14:12:46Z The impact of earnings management on the performance of ASEAN banks Wu Y.-C. Wei Kiong Ting I. Lu W.-M. Nourani M. Kweh Q.L. 57013722100 57211409300 25625212800 57189315827 55661469500 Southeast Asian financial liberalization policies have enthused both performance evaluation (a pro) and earnings management (a con). Using a sample of ASEAN commercial banks for the period 2007-2014, this study decomposes their banking performance into managerial and profitability efficiencies. An efficiency analysis reveals that Singaporean banks obtained the highest overall and profitability efficiencies, while Bruneian banks had the lowest rates of banking performance. In the stage of managerial efficiency, the most inefficient banks are those of the Philippines, whereas the greatest level is related to Malaysian banks. A frontier projection analysis suggests that Singaporean banks and Malaysian banks are generally more efficient in managing their expenditures and long-term assets in generating income in the long run. With respect to the con, a regression analysis indicates that loan loss provisions are negatively related to banking performance. Overall, it is advisable that policy makers with oversight function should promote performance evaluation from a multidimensional perspective, and keep an eye on estimates of loan loss provisions at banks over years because increases/decreases in loan loss provisions mean decreases/increases in net income or return on assets. � 2015 Elsevier B.V. Final 2023-05-29T06:12:46Z 2023-05-29T06:12:46Z 2016 Article 10.1016/j.econmod.2015.11.023 2-s2.0-84951069777 https://www.scopus.com/inward/record.uri?eid=2-s2.0-84951069777&doi=10.1016%2fj.econmod.2015.11.023&partnerID=40&md5=98ea5574a129a98df07d9ffda35c76f9 https://irepository.uniten.edu.my/handle/123456789/22855 53 156 165 Elsevier Scopus |
| spellingShingle | Wu Y.-C. Wei Kiong Ting I. Lu W.-M. Nourani M. Kweh Q.L. The impact of earnings management on the performance of ASEAN banks |
| title | The impact of earnings management on the performance of ASEAN banks |
| title_full | The impact of earnings management on the performance of ASEAN banks |
| title_fullStr | The impact of earnings management on the performance of ASEAN banks |
| title_full_unstemmed | The impact of earnings management on the performance of ASEAN banks |
| title_short | The impact of earnings management on the performance of ASEAN banks |
| title_sort | impact of earnings management on the performance of asean banks |
| url_provider | http://dspace.uniten.edu.my/ |