2018
DOI: 10.15208/beh.2018.33
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Accounting expertise in the audit committee and earnings management

Abstract: 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 dire… Show more

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Cited by 16 publications
(10 citation statements)
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“…The mean of firm size as computed by the natural log of total assets was 13.152, with the minimum and maximum sizes of 9.880 and 17.675, respectively. This result is consistent with findings of empirical studies (e.g., Al-Absy, Ismail, & Chandren, 2018;Qasem, Aripin, & Wan-Hussin, 2020). In terms of leverage, the descriptive statistics indicated a mean of 0.194, with a minimum value of zero and a maximum value of 0.724.…”
Section: Descriptive Statisticssupporting
confidence: 91%
“…The mean of firm size as computed by the natural log of total assets was 13.152, with the minimum and maximum sizes of 9.880 and 17.675, respectively. This result is consistent with findings of empirical studies (e.g., Al-Absy, Ismail, & Chandren, 2018;Qasem, Aripin, & Wan-Hussin, 2020). In terms of leverage, the descriptive statistics indicated a mean of 0.194, with a minimum value of zero and a maximum value of 0.724.…”
Section: Descriptive Statisticssupporting
confidence: 91%
“…The selection of these firms is based on the firms' performance using return on assets (ROA) (Burgstahler & Dichev, 1997;Roychowdhury, 2006;Yuliana, Anshori, & Alim, 2015). By following previous studies (Al-Absy, Ku Ismail, & Chandren, 2017, 2018a, 2018b, 2019a, 2019b, this study used the following two steps. First, firms with negative earnings in one or more years were excluded.…”
Section: Methodsmentioning
confidence: 99%
“…Generally, this study aims to examine whether or not BC who are NC or RC chairmen or merely as ordinary members of these committees, encourage or discourage EM practices. The current study contributes to the body of knowledge by focusing on both types of EM, AEM and REM (Al-Absy, Ku Ismail, & Chandren, 2018;Al-Absy, Ku Ismail, & Chandren, 2019), practically, in the Malaysian context. Further, it introduces a new issue, i.e., the dominance of BC in board committees, namely, the NC and RC.…”
Section: Introductionmentioning
confidence: 91%