Real earnings management practice in family group affiliated companies

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building INTELEK Repository
collection Online Access
collectionurl https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection407072
date 2018-12-30 08:57:01
eventvenue Malaysia
format Restricted Document
id 6502
institution UniSZA
originalfilename 1427-01-FH03-FESP-18-22505.pdf
person PDFium
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resourceurl https://intelek.unisza.edu.my/intelek/pages/view.php?ref=6502
spelling 6502 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=6502 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection407072 Restricted Document Conference Conference Paper application/pdf 3 Adobe Acrobat Pro DC 20 Paper Capture Plug-in 1.7 PDFium 2018-12-30 08:57:01 1427-01-FH03-FESP-18-22505.pdf UniSZA Private Access Real earnings management practice in family group affiliated companies Financial reporting quality of publicly owned companies still remains a serious issue in most countries including Malaysia. Real earnings management (REM) is now becoming a topic of concern in the corporate sector due to the increasing incidence of fraud and accounting manipulations. However, to date, research on managing real earnings through business group affiliation is still scarce and largely unexplored especially in developing countries. Previous studies suggest that family group affiliation contribute to the earnings manipulation. This is a major concern in Malaysia since more than fifty per cent of its publicly own companies are dominated by family group businesses. This unique characteristic and the limited research on REM provide the main justifications for this study. This article provides a review of the literature on REM and highlights on the size and complex nature of familyaffiliated business groups in Malaysia. A model to examine the relationships between family group affiliation and REM is then proposed to bridge the gap in earnings management research. The study will cover a ten-year period (2006 until 2015) which coincides with different economic conditions in Malaysia (i.e., economic boom, recession, recovery and stabilization). These different environments may affect REM practices differently and the findings are expected to provide new insight on REM behaviour of family affiliated companies in different market conditions. Furthermore, the results may contribute to strengthening the existing regulations and provide guidance on preventive strategies and controlling mechanism in the capital market. International Conference on Tourism, Technology and Business Management Malaysia
spellingShingle Real earnings management practice in family group affiliated companies
summary Financial reporting quality of publicly owned companies still remains a serious issue in most countries including Malaysia. Real earnings management (REM) is now becoming a topic of concern in the corporate sector due to the increasing incidence of fraud and accounting manipulations. However, to date, research on managing real earnings through business group affiliation is still scarce and largely unexplored especially in developing countries. Previous studies suggest that family group affiliation contribute to the earnings manipulation. This is a major concern in Malaysia since more than fifty per cent of its publicly own companies are dominated by family group businesses. This unique characteristic and the limited research on REM provide the main justifications for this study. This article provides a review of the literature on REM and highlights on the size and complex nature of familyaffiliated business groups in Malaysia. A model to examine the relationships between family group affiliation and REM is then proposed to bridge the gap in earnings management research. The study will cover a ten-year period (2006 until 2015) which coincides with different economic conditions in Malaysia (i.e., economic boom, recession, recovery and stabilization). These different environments may affect REM practices differently and the findings are expected to provide new insight on REM behaviour of family affiliated companies in different market conditions. Furthermore, the results may contribute to strengthening the existing regulations and provide guidance on preventive strategies and controlling mechanism in the capital market.
title Real earnings management practice in family group affiliated companies
title_full Real earnings management practice in family group affiliated companies
title_fullStr Real earnings management practice in family group affiliated companies
title_full_unstemmed Real earnings management practice in family group affiliated companies
title_short Real earnings management practice in family group affiliated companies
title_sort real earnings management practice in family group affiliated companies