Earnings management in Malaysian public listed family firms
The rise of accounting-related scandals has highlighted the prevalence of earnings management in financial markets. This paper offers empirical evidence on the motivations for earnings management in Malaysia public listed family firms. A sample of 100 family firms were randomly selected from Bursa M...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
UKM Press, Universiti Kebangsaan Malaysia
2017
|
| Online Access: | http://psasir.upm.edu.my/id/eprint/61530/ http://psasir.upm.edu.my/id/eprint/61530/1/Earnings%20management%20in%20Malaysian%20public%20listed%20family%20firms.pdf |
| _version_ | 1848854430176247808 |
|---|---|
| author | Teh, Boon Heng Ong, Tze San Lau, Yi Ying |
| author_facet | Teh, Boon Heng Ong, Tze San Lau, Yi Ying |
| author_sort | Teh, Boon Heng |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | The rise of accounting-related scandals has highlighted the prevalence of earnings management in financial markets. This paper offers empirical evidence on the motivations for earnings management in Malaysia public listed family firms. A sample of 100 family firms were randomly selected from Bursa Malaysia from the years 2010 to 2014, which resulted in 500 observations in total. The results indicate that the equity ownership held by a controlling family is associated with the earnings management in the firm, since the controlling family has greater power and rights in decision-making. However, the involvement of the controlling family as board of directors is not associated with earnings management in the family firm, since the non-executive member of the board will become the chairman to oversee and monitor the business operations of the family firm. The indirect ownership of the controlling family in family firms does not provide greater opportunity for them to manage earnings through direct equity shares held by other family members because they have limited power through indirect ownership. |
| first_indexed | 2025-11-15T11:09:44Z |
| format | Article |
| id | upm-61530 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T11:09:44Z |
| publishDate | 2017 |
| publisher | UKM Press, Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-615302022-05-25T03:08:41Z http://psasir.upm.edu.my/id/eprint/61530/ Earnings management in Malaysian public listed family firms Teh, Boon Heng Ong, Tze San Lau, Yi Ying The rise of accounting-related scandals has highlighted the prevalence of earnings management in financial markets. This paper offers empirical evidence on the motivations for earnings management in Malaysia public listed family firms. A sample of 100 family firms were randomly selected from Bursa Malaysia from the years 2010 to 2014, which resulted in 500 observations in total. The results indicate that the equity ownership held by a controlling family is associated with the earnings management in the firm, since the controlling family has greater power and rights in decision-making. However, the involvement of the controlling family as board of directors is not associated with earnings management in the family firm, since the non-executive member of the board will become the chairman to oversee and monitor the business operations of the family firm. The indirect ownership of the controlling family in family firms does not provide greater opportunity for them to manage earnings through direct equity shares held by other family members because they have limited power through indirect ownership. UKM Press, Universiti Kebangsaan Malaysia 2017 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/61530/1/Earnings%20management%20in%20Malaysian%20public%20listed%20family%20firms.pdf Teh, Boon Heng and Ong, Tze San and Lau, Yi Ying (2017) Earnings management in Malaysian public listed family firms. Jurnal Pengurusan, 51. pp. 183-193. ISSN 0127-2713 https://ejournal.ukm.my/pengurusan/article/view/22792 10.17576/pengurusan-2018-51-16 |
| spellingShingle | Teh, Boon Heng Ong, Tze San Lau, Yi Ying Earnings management in Malaysian public listed family firms |
| title | Earnings management in Malaysian public listed family firms |
| title_full | Earnings management in Malaysian public listed family firms |
| title_fullStr | Earnings management in Malaysian public listed family firms |
| title_full_unstemmed | Earnings management in Malaysian public listed family firms |
| title_short | Earnings management in Malaysian public listed family firms |
| title_sort | earnings management in malaysian public listed family firms |
| url | http://psasir.upm.edu.my/id/eprint/61530/ http://psasir.upm.edu.my/id/eprint/61530/ http://psasir.upm.edu.my/id/eprint/61530/ http://psasir.upm.edu.my/id/eprint/61530/1/Earnings%20management%20in%20Malaysian%20public%20listed%20family%20firms.pdf |