The impact of ownership structure on financial reporting quality in the east

Purpose: This paper aims to focus mainly on the relationship between ownership structure and earnings management of a developed and two developing economies, and is distinct from prior research. Design/methodology/approach: Using a sample of firms from three countries (Australia, Malaysia and Pakist...

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Main Authors: Qaiser Rafique, Yasser, Abdullah, Al Mamun, Hook, Margurite
Format: Article
Language:English
Published: Emerald Group Publishing Ltd. 2017
Subjects:
Online Access:http://ir.unimas.my/id/eprint/18197/
http://ir.unimas.my/id/eprint/18197/1/The%20impact%20of%20ownership%20sturcture%20on%20financial%20reporting%20%28abstrct0.pdf
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author Qaiser Rafique, Yasser
Abdullah, Al Mamun
Hook, Margurite
author_facet Qaiser Rafique, Yasser
Abdullah, Al Mamun
Hook, Margurite
author_sort Qaiser Rafique, Yasser
building UNIMAS Institutional Repository
collection Online Access
description Purpose: This paper aims to focus mainly on the relationship between ownership structure and earnings management of a developed and two developing economies, and is distinct from prior research. Design/methodology/approach: Using a sample of firms from three countries (Australia, Malaysia and Pakistan), the detailed ownership evolutions for the period 2011-2013 were observed. Findings: Overall, the authors find that in the East, ownership concentration is negatively associated with financial reporting quality. Individual ownership and group ownership were negatively associated with earnings management in Pakistan, however, not in Malaysia where the same were positively associated. Further, the result of this study indicated that state ownership is negatively associated with firm performance. Among the control variables, it was found that larger firms were negatively correlated with financial reporting, while firms with a larger board size and mature in the maneuver were coupled positively with earnings management. Originality/value: The results highlight the highly individualized effects of blockholders and the need for research to further understand the mechanisms through which shareholders impact financial reporting quality. © 2017, © Emerald Publishing Limited.
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spelling unimas-181972017-11-06T03:34:30Z http://ir.unimas.my/id/eprint/18197/ The impact of ownership structure on financial reporting quality in the east Qaiser Rafique, Yasser Abdullah, Al Mamun Hook, Margurite HG Finance Purpose: This paper aims to focus mainly on the relationship between ownership structure and earnings management of a developed and two developing economies, and is distinct from prior research. Design/methodology/approach: Using a sample of firms from three countries (Australia, Malaysia and Pakistan), the detailed ownership evolutions for the period 2011-2013 were observed. Findings: Overall, the authors find that in the East, ownership concentration is negatively associated with financial reporting quality. Individual ownership and group ownership were negatively associated with earnings management in Pakistan, however, not in Malaysia where the same were positively associated. Further, the result of this study indicated that state ownership is negatively associated with firm performance. Among the control variables, it was found that larger firms were negatively correlated with financial reporting, while firms with a larger board size and mature in the maneuver were coupled positively with earnings management. Originality/value: The results highlight the highly individualized effects of blockholders and the need for research to further understand the mechanisms through which shareholders impact financial reporting quality. © 2017, © Emerald Publishing Limited. Emerald Group Publishing Ltd. 2017 Article PeerReviewed text en http://ir.unimas.my/id/eprint/18197/1/The%20impact%20of%20ownership%20sturcture%20on%20financial%20reporting%20%28abstrct0.pdf Qaiser Rafique, Yasser and Abdullah, Al Mamun and Hook, Margurite (2017) The impact of ownership structure on financial reporting quality in the east. International Journal of Organizational Analysis, 25 (2). pp. 178-197. ISSN 19348835 http://www.emeraldinsight.com/doi/full/10.1108/IJOA-08-2015-0894 DOI: 10.1108/IJOA-08-2015-0894
spellingShingle HG Finance
Qaiser Rafique, Yasser
Abdullah, Al Mamun
Hook, Margurite
The impact of ownership structure on financial reporting quality in the east
title The impact of ownership structure on financial reporting quality in the east
title_full The impact of ownership structure on financial reporting quality in the east
title_fullStr The impact of ownership structure on financial reporting quality in the east
title_full_unstemmed The impact of ownership structure on financial reporting quality in the east
title_short The impact of ownership structure on financial reporting quality in the east
title_sort impact of ownership structure on financial reporting quality in the east
topic HG Finance
url http://ir.unimas.my/id/eprint/18197/
http://ir.unimas.my/id/eprint/18197/
http://ir.unimas.my/id/eprint/18197/
http://ir.unimas.my/id/eprint/18197/1/The%20impact%20of%20ownership%20sturcture%20on%20financial%20reporting%20%28abstrct0.pdf