Accounting Expertise in the Audit Committee and Earnings Management

• Autorzy: Mujeeb Saif Mohsen Al-Absy , Ku Nor Izah Ku Ismail , Sitraselvi Chandren
• Języki publikacji: EN

Abstrakty

EN

This study attempts to investigate the influence of accounting expertise in the AC on the level of accrual earnings management (AEM) in Malaysian firms by using two proxies, the Modified Jones Models by Dechow et al. (1995) and Kasznik (1999). A sample of 143 firms with slight positive earnings were selected from the Bursa Malaysia Main Market for 2013, 2014 and 2015. Using panel data regression, this study shows that accounting expertise in the AC does not mitigate AEM. The accounting expertise of the AC directors and chairman and the AC's balanced accounting expertise have a positive relationship with attitude for AEM. In line with prior studies, this paper concludes that AC directors are either not truly independent or do not have time or energy to mitigate earnings management practices. Thus, more policies are needed to strengthen the independence of the AC and ensure the members carry out their duties more responsibly. (original abstract)

Słowa kluczowe

EN

Audit committee; Earnings management; Bookkeeping

PL

Komitet audytu; Zarządzanie zyskami; Księgowość

• Czasopismo: Business and Economic Horizons
• Rocznik: 2018
• Numer: vol. 14, iss. 3
• Strony: 451--476

Twórcy

autor

Mujeeb Saif Mohsen Al-Absy

• Universiti Utara Malaysia Sintok, Malaysia

autor

Ku Nor Izah Ku Ismail

• Universiti Utara Malaysia Sintok, Malaysia

autor

Sitraselvi Chandren

• Universiti Utara Malaysia Sintok, Malaysia

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Identyfikatory

DOI

10.15208/beh.2018.33