Business elites and earnings management in Malaysian public listed companies

Sriram, Roopini A/P; Yusoff, Wan Sallha; Salleh, Mohd Fairuz Md; Ibrahim, Suraiya; Rashid, Intan Maizura Abdul; Azmin, Adi Anuar

doi:10.1063/5.0051947

Cited by 1 publication

(1 citation statement)

References 17 publications

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“…This is worrying enough as other Southeast Asian countries showed a decrease in the level of fraud (from 40% to 29%) between 2020 and 2022. In addition, Malaysia provides an appealing institutional setting which can be characterized as family connected (Abdul Rahman and Mohamed Ali, 2006), rich people connected (Sriram et al, 2021) and politically connected (Sun et al, 2012) which may influence the less enforcement of regulations in this country. This setting may influence fraud risks differently.…”

Section: Introductionmentioning

confidence: 99%

Risk Management practices and potential fraudulent financial reporting: evidence from Malaysia

Madah Marzuki,

Nik Abdul Majid,

Abu Bakar

et al. 2024

AJAR

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PurposeThis paper investigates the relationship between risk management practices and potential fraudulent financial reporting in Malaysia by considering recent regulatory reforms of the Malaysian government on risk management practices.Design/methodology/approachThe sample of this study was based on 257 firm-year observations during the 2012–2017 period. This study employed panel-least square regressions with period fixed effects.FindingsThis study found a significant association between risk management activities in the disclosure and potential fraudulent financial reporting. Nevertheless, this study found there is insignificant effect of the risk-management committee in reducing potential of fraudulent financial reporting.Originality/valueThis study is a pioneer research that relates firms’ risk management practices with potential fraudulent financial reporting measured by F-score. Thus, this study provides an insight to regulators on the extent of risk-management practices in deterring potential fraudulent financial reporting which can be used as an input for greater enforcement of risk-management regulations.

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Section: Introductionmentioning

confidence: 99%