Association between Board Characteristics and Earnings Quality: Malaysian Evidence

Al‐Dhamari, Redhwan; Ismail, Ku Nor Izah Ku

doi:10.17576/pengurusan-2014-41-04

Cited by 11 publications

(18 citation statements)

References 51 publications

(56 reference statements)

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“…Board has a crucial role to ensure this quality especially in developing countries (AL-Dhamari & Ismail, 2014).Thus, this study focuses some existing and some of the newly recommended attributes of MCCG 2012 in relation to reporting quality of financial information.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The quality of financial information reporting is better in the firms with independent chair of the board than the firms without in Malaysian context (AL-Dhamari & Ismail, 2014). Accordingly, the MCCG 2012 http: //dx.doi.org/10.15405/epsbs.2016.08.107 eISSN: 2357-1330 …”

Section: Independent Chair and Financial Reporting Qualitymentioning

confidence: 99%

“…To sum up, the relationship between proportion of independent directors on the board and financial reporting quality is inconclusive (AL-Dhamari & Ismail, 2014) which necessitates further investigation (Ho & Wong, 2001;Klein, 2002;Petra, 2007;Xie, Davidson, & DaDalt, 2003). Moreover, the introduction of new code (MCCG 2012) in Malaysia which recommended majority of independent directors on the board also necessitates further investigation of the relationship in Malaysian context.…”

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confidence: 99%

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The Impact of Corporate Governance Regulations on Board Independence and Quality of Financial Information Reporting: A Proposed Study

Rahman¹,

Johl²,

Ahmad³

et al. 2016

European Proceedings of Social &Amp; Behavioural Sciences

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The recent corporate scandals revealed misreporting and poor quality of financial information reporting. The misreporting evidenced that board of directors couldn't ensure its role of effective monitoring to minimize management's conflicts, frauds and misrepresentations of information. These in turn, diverted the attention of regulators and policy makers towards independence of the board among others. Malaysia, like other countries, also advised independence of the board in its third code of corporate governance (MCCG 2012) introduced in March, 2012. The code recommended independence of the board to ensure effective monitoring of management. Agency theory and many CG regulations around the world posit that strengthening independence of the board improves firms' reporting quality of financial information. Therefore, this paper proposes to investigate how some specific attributes of the new regulation regarding independence of the board impacted quality of financial information reporting in Malaysian listed companies. The paper proposes a pre and post analysis of the code by comparing 2 years pre (2010-11) and 2 years post context of the code. The proposed study will contribute to the limited literature with inconclusive results. Moreover, it will also provide insights for shareholders, banks, financial institution, security commission and Bursa Malaysia.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Independent Chair and Financial Reporting Qualitymentioning

confidence: 99%

mentioning

confidence: 99%

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The Impact of Corporate Governance Regulations on Board Independence and Quality of Financial Information Reporting: A Proposed Study

Rahman¹,

Johl²,

Ahmad³

et al. 2016

European Proceedings of Social &Amp; Behavioural Sciences

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“…Based on their findings, [6], found an inconclusive evidence that the dominance of independent directors improves firms' financial performance. Similarly, [7] finding revealed that the presence of independent directors does not improve board monitoring in family owned companies While, [4] documented that independent directors reduce earnings ability to predict future cash flows in the Malaysian context. According to [8], the independent directors do not have an adequate understanding of the daily operation of the company.…”

Section: Introductionmentioning

confidence: 99%

Auditor’s Risk Assessment of Independent Directors in Nigeria

Salau

Ahmad

2017

SHS Web Conf.

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Abstract. The objective of this study is to investigate the external auditor's risk assessment of independent directors in Nigeria. The study utilized data from 94 non-financial listed companies on the Nigerian Stock Exchange for the periods 2008-2013. The study used cross-sectional timeseries feasible generalized least square regression, which account for heteroscedasticity and autocorrelation to test the influence independent non-executive director on auditor pricing decision in Nigeria. Our result indicates that the proportion of independent non-executive director has a positive relationship with audit fees, suggesting that this class of directors is priced high by the Nigerian auditors. These findings have both policy and practical implication on corporate governance. For instance, future regulatory reforms could consider collaborative board model instead of the insistence on more independent director presence in the boardroom.

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“…Analysts and market participants react to information content conveyed through accounting earnings. However, the financial reporting literature indicates that erosions in earnings quality have negatively influenced investor's confidence on the integrity of accounting information (Al-Dhamari, 2014). They use the publicly available information to ascertain the level of accuracy in the reported earnings.…”

Section: Introductionmentioning

confidence: 99%

Book-Tax Ratio and Earnings Quality of Listed Firms in Nigeria

Gberegbe¹

2019

JMAA

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The main objective of this study is to examine the nature relationship between book-tax ratio and earnings quality of listed firms in Nigeria. The other specific objective is to assess the level of earnings quality of listed firms in Nigeria. The expo facto design was adopted for this study on 47 listed firms on the Nigeria Stock Exchange. This design relies on secondary data in exploring the relationship between book-tax ratio and earnings quality. The result revealed that book-tax ratio has no significant positive association with earnings quality of listed firms in Nigeria. This suggests that taxable income does not convey additional incremental information on earnings with respect to contemporaneous stock returns and accruals. To the best of our knowledge, this is one of the few studies that have investigated the relationship between book-tax ratio and earnings quality in different sectors in Nigeria.The result has implication on capital market and earnings quality. Thus, the result of this study will be useful to capital market regulators, standard setters, and future researchers.

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Association between Board Characteristics and Earnings Quality: Malaysian Evidence

Abstract: The present study examines

Cited by 11 publications

References 51 publications

The Impact of Corporate Governance Regulations on Board Independence and Quality of Financial Information Reporting: A Proposed Study

The Impact of Corporate Governance Regulations on Board Independence and Quality of Financial Information Reporting: A Proposed Study

Auditor’s Risk Assessment of Independent Directors in Nigeria

Book-Tax Ratio and Earnings Quality of Listed Firms in Nigeria

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