Director Networks, Political Connections and Earnings Quality in Malaysia

© 2020 The International Association for Chinese Management Research. This paper investigates the relationship between director networks and earnings quality in Malaysia. Using data on 4,416 individual directors who served on the boards of 745 firms listed on Bursa Malaysia during 2011, we map th...

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Main Authors: Abdul Wahab, Effiezal, Jamaludin, Mohd Faizal, Agustia, Dian, Harymawan, Iman
Format: Journal Article
Language:English
Published: Cambridge University Press 2020
Subjects:
Online Access:http://hdl.handle.net/20.500.11937/80702
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author Abdul Wahab, Effiezal
Jamaludin, Mohd Faizal
Agustia, Dian
Harymawan, Iman
author_facet Abdul Wahab, Effiezal
Jamaludin, Mohd Faizal
Agustia, Dian
Harymawan, Iman
author_sort Abdul Wahab, Effiezal
building Curtin Institutional Repository
collection Online Access
description © 2020 The International Association for Chinese Management Research. This paper investigates the relationship between director networks and earnings quality in Malaysia. Using data on 4,416 individual directors who served on the boards of 745 firms listed on Bursa Malaysia during 2011, we map the entire network of directors and generate measures to reflect the size and quality of information within the network. We find a negative and significant relationship between the overall connectedness of a director’s network and the firm’s earnings quality. In addition, we find a negative and significant relationship between the political connectedness of the director’s network and earnings quality. Our results are robust for different measures of earnings quality.
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publishDate 2020
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spelling curtin-20.500.11937-807022022-09-05T04:28:37Z Director Networks, Political Connections and Earnings Quality in Malaysia Abdul Wahab, Effiezal Jamaludin, Mohd Faizal Agustia, Dian Harymawan, Iman 1501 - Accounting, Auditing and Accountability 1503 - Business and Management © 2020 The International Association for Chinese Management Research. This paper investigates the relationship between director networks and earnings quality in Malaysia. Using data on 4,416 individual directors who served on the boards of 745 firms listed on Bursa Malaysia during 2011, we map the entire network of directors and generate measures to reflect the size and quality of information within the network. We find a negative and significant relationship between the overall connectedness of a director’s network and the firm’s earnings quality. In addition, we find a negative and significant relationship between the political connectedness of the director’s network and earnings quality. Our results are robust for different measures of earnings quality. 2020 Journal Article http://hdl.handle.net/20.500.11937/80702 10.1017/mor.2020.26 English Cambridge University Press fulltext
spellingShingle 1501 - Accounting, Auditing and Accountability
1503 - Business and Management
Abdul Wahab, Effiezal
Jamaludin, Mohd Faizal
Agustia, Dian
Harymawan, Iman
Director Networks, Political Connections and Earnings Quality in Malaysia
title Director Networks, Political Connections and Earnings Quality in Malaysia
title_full Director Networks, Political Connections and Earnings Quality in Malaysia
title_fullStr Director Networks, Political Connections and Earnings Quality in Malaysia
title_full_unstemmed Director Networks, Political Connections and Earnings Quality in Malaysia
title_short Director Networks, Political Connections and Earnings Quality in Malaysia
title_sort director networks, political connections and earnings quality in malaysia
topic 1501 - Accounting, Auditing and Accountability
1503 - Business and Management
url http://hdl.handle.net/20.500.11937/80702