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IFRS convergence and earnings management

Khoo, Chung-Peng and Ahmad Zaluki, Nurwati Ashikkin (2015) IFRS convergence and earnings management. Pertanika Journal of Social Sciences & Humanities, 23 (S). pp. 75-84. ISSN 0128-7702

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In this work, the extent of earnings management before and after IFRS convergence was examined. Board’s characteristics (independent of board members, board size, ethnicity, and political influence) and company’s characteristics (audit quality, foreign stock market listing, company size, leverage, profitability and growth) before and after IFRS convergence were also investigated. Meanwhile, the Kothari’s discretionary accrual model was used to measure the extent of earnings management.Using a sample of 231 publicly listed Malaysian companies over the 2005–06 period, it was found that IFRS convergence reduced the extent of earnings management.However, board’s characteristics variables did not show any significant difference before and after the IFRS convergence.As for company’s characteristics, only company growth was found to have a statistically significant difference before and after the IFRS convergence.

Item Type: Article
Uncontrolled Keywords: Political connections, IFRS, Malaysia, Earnings management
Subjects: H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Othman Yeop Abdullah Graduate School of Business
Depositing User: Prof. Dr. Nurwati Ashikkin Ahmad Zaluki
Date Deposited: 07 Jan 2016 03:36
Last Modified: 14 Apr 2016 06:11

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