Institutional ownership and earnings quality pre- and post-IFRS
This study investigates whether earnings quality (EQ) has improved after the adoption of International Financial Reporting Standards (IFRS) in Malaysia. It also examines whether institutional ownership is related to higher EQ and whether IFRS adoption moderates this association. Using a system gener...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Faculty of Economics and Management, Universiti Putra Malaysia
2018
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| Online Access: | http://psasir.upm.edu.my/id/eprint/74695/ http://psasir.upm.edu.my/id/eprint/74695/1/Institutional%20Ownership%20and%20Earnings%20Quality%20pre-%20and%20post-IFRS.pdf |
| _version_ | 1848857540175069184 |
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| author | Alhadi, Saleh M. A. Abd Senik, Rosmila Johari, Jalila |
| author_facet | Alhadi, Saleh M. A. Abd Senik, Rosmila Johari, Jalila |
| author_sort | Alhadi, Saleh M. A. Abd |
| building | UPM Institutional Repository |
| collection | Online Access |
| description | This study investigates whether earnings quality (EQ) has improved after the adoption of International Financial Reporting Standards (IFRS) in Malaysia. It also examines whether institutional ownership is related to higher EQ and whether IFRS adoption moderates this association. Using a system generalized method of moments (GMM) on a sample of 1960 firm-year observations over the period 2007–2016, we find that EQ is significantly enhanced after adoption of IFRS in Malaysia. The findings also show that institutional ownership has a negative impact on accrual earnings management, leading to high EQ. This impact increased after IFRS adoption, indicating that institutional ownership is effective in improving EQ after IFRS compared to pre-period. Our findings indicate that regulators and practitioners should focus on institutional ownership and IFRS as monitoring mechanisms that remain an essential determinant of EQ. |
| first_indexed | 2025-11-15T11:59:10Z |
| format | Article |
| id | upm-74695 |
| institution | Universiti Putra Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T11:59:10Z |
| publishDate | 2018 |
| publisher | Faculty of Economics and Management, Universiti Putra Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | upm-746952019-10-17T00:41:33Z http://psasir.upm.edu.my/id/eprint/74695/ Institutional ownership and earnings quality pre- and post-IFRS Alhadi, Saleh M. A. Abd Senik, Rosmila Johari, Jalila This study investigates whether earnings quality (EQ) has improved after the adoption of International Financial Reporting Standards (IFRS) in Malaysia. It also examines whether institutional ownership is related to higher EQ and whether IFRS adoption moderates this association. Using a system generalized method of moments (GMM) on a sample of 1960 firm-year observations over the period 2007–2016, we find that EQ is significantly enhanced after adoption of IFRS in Malaysia. The findings also show that institutional ownership has a negative impact on accrual earnings management, leading to high EQ. This impact increased after IFRS adoption, indicating that institutional ownership is effective in improving EQ after IFRS compared to pre-period. Our findings indicate that regulators and practitioners should focus on institutional ownership and IFRS as monitoring mechanisms that remain an essential determinant of EQ. Faculty of Economics and Management, Universiti Putra Malaysia 2018-11-22 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/74695/1/Institutional%20Ownership%20and%20Earnings%20Quality%20pre-%20and%20post-IFRS.pdf Alhadi, Saleh M. A. Abd and Senik, Rosmila and Johari, Jalila (2018) Institutional ownership and earnings quality pre- and post-IFRS. International Journal of Economics and Management, 12 (S2). pp. 747-757. ISSN 1823-836X; ESSN: 2600-9390 http://www.ijem.upm.edu.my/vol12_noS2/32)%20Institutional%20Ownership.pdf |
| spellingShingle | Alhadi, Saleh M. A. Abd Senik, Rosmila Johari, Jalila Institutional ownership and earnings quality pre- and post-IFRS |
| title | Institutional ownership and earnings quality pre- and post-IFRS |
| title_full | Institutional ownership and earnings quality pre- and post-IFRS |
| title_fullStr | Institutional ownership and earnings quality pre- and post-IFRS |
| title_full_unstemmed | Institutional ownership and earnings quality pre- and post-IFRS |
| title_short | Institutional ownership and earnings quality pre- and post-IFRS |
| title_sort | institutional ownership and earnings quality pre- and post-ifrs |
| url | http://psasir.upm.edu.my/id/eprint/74695/ http://psasir.upm.edu.my/id/eprint/74695/ http://psasir.upm.edu.my/id/eprint/74695/1/Institutional%20Ownership%20and%20Earnings%20Quality%20pre-%20and%20post-IFRS.pdf |