Institutional factors and conditional conservatism in Malaysia: Does international financial reporting standards convergence matter?
We examine the impact of International Financial Reporting Standards (IFRS) convergence on conditional conservatism in Malaysia. In addition, we examine the influence of various institutional factors, namely, political connections, Bumiputras directors, family firms and richest-men connections on co...
| Main Authors: | , |
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| Format: | Journal Article |
| Published: |
Elsevier
2016
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| Online Access: | http://hdl.handle.net/20.500.11937/36246 |
| _version_ | 1848754715016298496 |
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| author | Marzuk, M. Abdul Wahab, Effiezal Aswadi |
| author_facet | Marzuk, M. Abdul Wahab, Effiezal Aswadi |
| author_sort | Marzuk, M. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | We examine the impact of International Financial Reporting Standards (IFRS) convergence on conditional conservatism in Malaysia. In addition, we examine the influence of various institutional factors, namely, political connections, Bumiputras directors, family firms and richest-men connections on conservatism. Prior literature presents evidence of IFRS convergence on conservatism, but limited evidence exists on the role of institutional factors on conservatism. Using a sample of 1760 firm-year observations from 2004 to 2008, we provide evidence that IFRS enhances conservatism. Firms with Bumiputras directors and family firms are more conservative post-IFRS convergence, whereas the reverse behaviour results for firms with richest-men connections. We find no evidence of politically connected firms being more conservative post-IFRS convergence. Our study provides knowledge on the role of IFRS in conditional conservatism and the role of institutional factors in this relationship. |
| first_indexed | 2025-11-14T08:44:48Z |
| format | Journal Article |
| id | curtin-20.500.11937-36246 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:44:48Z |
| publishDate | 2016 |
| publisher | Elsevier |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-362462018-10-03T05:13:54Z Institutional factors and conditional conservatism in Malaysia: Does international financial reporting standards convergence matter? Marzuk, M. Abdul Wahab, Effiezal Aswadi We examine the impact of International Financial Reporting Standards (IFRS) convergence on conditional conservatism in Malaysia. In addition, we examine the influence of various institutional factors, namely, political connections, Bumiputras directors, family firms and richest-men connections on conservatism. Prior literature presents evidence of IFRS convergence on conservatism, but limited evidence exists on the role of institutional factors on conservatism. Using a sample of 1760 firm-year observations from 2004 to 2008, we provide evidence that IFRS enhances conservatism. Firms with Bumiputras directors and family firms are more conservative post-IFRS convergence, whereas the reverse behaviour results for firms with richest-men connections. We find no evidence of politically connected firms being more conservative post-IFRS convergence. Our study provides knowledge on the role of IFRS in conditional conservatism and the role of institutional factors in this relationship. 2016 Journal Article http://hdl.handle.net/20.500.11937/36246 10.1016/j.jcae.2016.09.004 Elsevier fulltext |
| spellingShingle | Marzuk, M. Abdul Wahab, Effiezal Aswadi Institutional factors and conditional conservatism in Malaysia: Does international financial reporting standards convergence matter? |
| title | Institutional factors and conditional conservatism in Malaysia: Does international financial reporting standards convergence matter? |
| title_full | Institutional factors and conditional conservatism in Malaysia: Does international financial reporting standards convergence matter? |
| title_fullStr | Institutional factors and conditional conservatism in Malaysia: Does international financial reporting standards convergence matter? |
| title_full_unstemmed | Institutional factors and conditional conservatism in Malaysia: Does international financial reporting standards convergence matter? |
| title_short | Institutional factors and conditional conservatism in Malaysia: Does international financial reporting standards convergence matter? |
| title_sort | institutional factors and conditional conservatism in malaysia: does international financial reporting standards convergence matter? |
| url | http://hdl.handle.net/20.500.11937/36246 |