The relationship between ownership structure and real earnings management practices: evidence from Malaysian public companies
This study aimed to examine the mitigating effects of ownership structure on real earnings management practices among Malaysian public-listed firms. Data was collected from firms listed on Bursa Malaysia’s main market, covering the years 2011 through 2021. The findings of Generalised Least Squar...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2024
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| Online Access: | http://journalarticle.ukm.my/25189/ http://journalarticle.ukm.my/25189/1/Pengurusan_72_2.pdf |
| Summary: | This study aimed to examine the mitigating effects of ownership structure on real earnings management practices
among Malaysian public-listed firms. Data was collected from firms listed on Bursa Malaysia’s main market,
covering the years 2011 through 2021. The findings of Generalised Least Squares panel regression confirmed the
significant negative effect of family ownership and foreign ownership on listed firms’ real earnings management,
while managerial ownership and ownership concentration demonstrated insignificant effects. Practically, this
study offers an effective framework for ownership structure and real earnings management practices to reduce
executive managers' opportunistic behaviour. The findings contribute to a broader understanding of these
phenomena so that investors and other stakeholders can better analyse earnings reports and, therefore, make
informed decisions, particularly pertaining to non-owner-controlled firms. |
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