Does retrenchment strategy mitigate earnings management? Evidence from Public Listed Companies in Malaysia
During the past three decades, many firms in developing market have embarked retrenchment strategy in order to defend firm going concern from economy turbulence. Yet, this strategy is rarely investigated compared to another strategy like diversi fication. T...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Munich University Library
2014
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/18017/ http://ir.unimas.my/id/eprint/18017/1/Does%20retrenchment%20strategy%20mitigate%20earning%20management%20%28abstract%29.pdf |
| _version_ | 1848838417485398016 |
|---|---|
| author | Ung, Likjing Brahmana, Rayenda Khresna Puah, Chin Hong |
| author_facet | Ung, Likjing Brahmana, Rayenda Khresna Puah, Chin Hong |
| author_sort | Ung, Likjing |
| building | UNIMAS Institutional Repository |
| collection | Online Access |
| description | During the past three decades,
many firms in developing market have
embarked retrenchment
strategy in order to
defend firm going concern from economy turbulence. Yet, this strategy is
rarely investigated compared to another strategy like diversi
fication.
This is not to mention
limited
research investigating whether companies might manipulate their earnings through the
retrenchment costs
across ownership expropriation
. As Malaysia offers unique background
earnings management, corporate strategy
and ownership structure, t
his study
aims to answer
intriguing yet interesting question:
Do Malaysia’s
listed companies consider retrenchment costs
when they manipulate earning
across its ownership expropriation?
Using 237
Malaysia
n listed
companies
over
th
e period 2008
-
2013
, this study
f
oun
d that retrenchment costs
are
used to
manipulate earnings in companies.
In addition, we find that
ownership concentration
do not
significantly affects the earnings management of the firms. |
| first_indexed | 2025-11-15T06:55:13Z |
| format | Article |
| id | unimas-18017 |
| institution | Universiti Malaysia Sarawak |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T06:55:13Z |
| publishDate | 2014 |
| publisher | Munich University Library |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | unimas-180172017-10-06T01:25:14Z http://ir.unimas.my/id/eprint/18017/ Does retrenchment strategy mitigate earnings management? Evidence from Public Listed Companies in Malaysia Ung, Likjing Brahmana, Rayenda Khresna Puah, Chin Hong H Social Sciences (General) During the past three decades, many firms in developing market have embarked retrenchment strategy in order to defend firm going concern from economy turbulence. Yet, this strategy is rarely investigated compared to another strategy like diversi fication. This is not to mention limited research investigating whether companies might manipulate their earnings through the retrenchment costs across ownership expropriation . As Malaysia offers unique background earnings management, corporate strategy and ownership structure, t his study aims to answer intriguing yet interesting question: Do Malaysia’s listed companies consider retrenchment costs when they manipulate earning across its ownership expropriation? Using 237 Malaysia n listed companies over th e period 2008 - 2013 , this study f oun d that retrenchment costs are used to manipulate earnings in companies. In addition, we find that ownership concentration do not significantly affects the earnings management of the firms. Munich University Library 2014 Article PeerReviewed text en http://ir.unimas.my/id/eprint/18017/1/Does%20retrenchment%20strategy%20mitigate%20earning%20management%20%28abstract%29.pdf Ung, Likjing and Brahmana, Rayenda Khresna and Puah, Chin Hong (2014) Does retrenchment strategy mitigate earnings management? Evidence from Public Listed Companies in Malaysia. Munich Personal RePEc Archive. ISSN 2285-6803 https://mpra.ub.uni-muenchen.de/id/eprint/63426 |
| spellingShingle | H Social Sciences (General) Ung, Likjing Brahmana, Rayenda Khresna Puah, Chin Hong Does retrenchment strategy mitigate earnings management? Evidence from Public Listed Companies in Malaysia |
| title | Does retrenchment strategy mitigate earnings management? Evidence from Public Listed Companies in Malaysia |
| title_full | Does retrenchment strategy mitigate earnings management? Evidence from Public Listed Companies in Malaysia |
| title_fullStr | Does retrenchment strategy mitigate earnings management? Evidence from Public Listed Companies in Malaysia |
| title_full_unstemmed | Does retrenchment strategy mitigate earnings management? Evidence from Public Listed Companies in Malaysia |
| title_short | Does retrenchment strategy mitigate earnings management? Evidence from Public Listed Companies in Malaysia |
| title_sort | does retrenchment strategy mitigate earnings management? evidence from public listed companies in malaysia |
| topic | H Social Sciences (General) |
| url | http://ir.unimas.my/id/eprint/18017/ http://ir.unimas.my/id/eprint/18017/ http://ir.unimas.my/id/eprint/18017/1/Does%20retrenchment%20strategy%20mitigate%20earning%20management%20%28abstract%29.pdf |