The effect of earnings management on bank efficiency

Ab-Hamid, Mohd Fahmee; Asid, Rozilee; Sulaiman, Nor Fatimah Che; Sulaiman, Wan Farisan Wan; Bahri, Elya Nabila Abdul

doi:10.17576/ajag-2018-10-07

Cited by 9 publications

(8 citation statements)

References 28 publications

(38 reference statements)

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“…Their study focused on the effect of earnings management on the efficiency of Eurozone banks using a sample of 70 banks under the supervision of the European Central Bank. A similar result was obtained in the study of Ab-Hamid, Asid, Sulaiman, Sulaiman, and Bahri (2018) on the impact of earnings management on the efficiency of banks in five Association of Southeast Asian Nations (ASEAN) countries.…”

Section: Empirical Reviewsupporting

confidence: 83%

“…Notably, regarding corporate governance, studies by Ebimobowei (2022), Marie et al (2021), andKhanifah et al (2020) documented positive significant effects, while studies by Ali et al (2020), Omesi and Appah (2021), and Boshnak (2021) reported negative effects. On the other hand, studies on financial reporting by Ayuba (2022); Aguguom et al (2019), Proença et al (2023), Ab-Hamid et al (2018), and Fonou-Dombeu et al (2022 reported mixed findings. These divergences further suggest inclusiveness and create gaps for further research.…”

Section: Empirical Reviewmentioning

confidence: 97%

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Examining the impact of corporate governance and corporate financial reporting on firm value: A study of selected banks in Nigeria

Ogundajo

Adegbie

Oyegoke

et al. 2023

IJAEFA

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Globally, managers are always under intense pressure to meet stakeholders’ desired firm value expectations, creating uncertainties and apprehensiveness when making corporate strategic plans. Prior studies have laid claims that best corporate governance practices and corporate financial reporting quality are important in achieving a successful and sustainable value for banks. Consequently, this study examined the impact of corporate governance and corporate financial reporting on the value of selected banks in Nigeria. This study made use of panel data extracted from the audited annual reports and accounts of the thirteen (13) selected banks for fifteen (15) years which yielded 195 firm-year observations. Random-effects Generalized Least Square (GLS) regression estimation technique was employed for the analysis. The study discovered that corporate governance and corporate financial reporting exerted a significant positive impact on the value of selected banks in Nigeria (Adj.R2 = 0.48, Wald Sat. (4, 190) = 18.3, p < 0.05). The study concluded that corporate governance and corporate financial reporting collectively are important determining factors of the value of selected banks in Nigeria. Enforcing strict compliance with financial reporting regulations to ensure transparency, reliability, and earnings quality would enhance analysts’ and users’ forecast and predictive abilities.

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Section: Empirical Reviewsupporting

confidence: 83%

Section: Empirical Reviewmentioning

confidence: 97%

Examining the impact of corporate governance and corporate financial reporting on firm value: A study of selected banks in Nigeria

Ogundajo

Adegbie

Oyegoke

et al. 2023

IJAEFA

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“…These attributes are arguably dissimilar to those in advanced economies, which was the focus of prior EM studies. Contrastingly, different from prior Malaysian EM studies (Ab-Hamid et al 2018;Abdul Rahim & Nelson 2018), this study uses a multiple regression method on 227 Malaysian listed firms from 2001-2015 and finds firms that just meet the earnings benchmark (avoid losses and earnings decline), either via accrual and real earnings management activities, have lower future performance. Furthermore, if these firms managed earnings via real earnings management (REM) to just meet the earnings benchmark will have an even lower future performance.…”

Section: Introductionmentioning

confidence: 93%

Financial Reporting Behaviour and Firm’s Economic Success: Malaysian Evidence

Mahyuddin

Nahar

Yusry

2020

AJAG

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The emergence of modern corporate landscape, with regard to the way firms are managed and controlled, creates a variety of financial reporting issues. Empirical results in prior studies have been inconclusive, as to whether financial reporting behaviours i.e. earnings management activities are detrimental to firms' economic success (proxied by its future performance). Some have argued that managing earnings are intended to achieve better future performance rather than being opportunistic in nature. This study aims to empirically investigate whether managing earnings to meet earnings target has any affect on firms' future performance in Malaysia. In extending prior work in the earnings management area, by incorporating discretionary reporting behaviour element to provide better view of Malaysian firms' financial reporting behaviours across 2001-2015 reporting horizon, we find that real-based earnings management led to lower firm's future performance. This supports the agency theory prediction that firms which engage in real reporting opportunistically would negatively affect their future economic performance. This, however, does not hold true for accruals earnings management. The empirical results suggest that different mechanisms of financial reporting behaviour, of either discretionary or real in nature, provide different implications on the firms' future performance. The paper adds to the growing body of empirical knowledge in financial reporting behaviours and firms' economic success in an emerging economy like Malaysia.

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“…Manajemen laba di bank dilakukan berdasarkan provisi kerugian pinjaman diskresioner dan keuntungan keamanan dan kerugian untuk mengelola laba dan tingkat modal (Hamid et al, 2018). Praktik manajemen laba dapat mengganggu kemampuan bank untuk menggunakan alokasi sumber daya secara optimal saat menawarkan layanan perantara keuangan mereka.…”

Section: Literature Review Manajemen Labaunclassified

Pengaruh Manajemen Laba Terhadap Efisiensi Bank Konvensional Di Indonesia

Sari

2023

JIEMBI

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Aspek terpenting yang merupakan fokus utama dalam pengukuran kinerja adalah efisiensi agar dapat menekan biaya operasional. Tujuan dari penelitian ini menganalisis pengaruh manajemen laba terhadap efisiensi perbankan konvensional di Indonesia. Penelitian ini menggunakan pendekatan kuantitatif dengan populasi bank umum konvensional pada tahun 2019-2022. Dan untuk pengumpulan sampel yang digunakan adalah dengan metode purposive sampling dengan teknik pengambilan sampel non-probability sampling. Dari kriteria sampel diperoleh hasil sampel yaitu annual report 10 bank umum konvensional pada tahun 2019-2022 sebanya 40 data. Metode yang digunakan adalah DEA dalam mengukur tingkat efisiensi dan regresi linier sederhana untuk pengujian hipotesis dengan Software SPSS. Hasil uji hipotesis diperoleh bahwa ada pengaruh negative signifikan variable manajemen laba terhadap efisiensi bank konvensional

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The effect of earnings management on bank efficiency

Cited by 9 publications

References 28 publications

Examining the impact of corporate governance and corporate financial reporting on firm value: A study of selected banks in Nigeria

Examining the impact of corporate governance and corporate financial reporting on firm value: A study of selected banks in Nigeria

Financial Reporting Behaviour and Firm’s Economic Success: Malaysian Evidence

Pengaruh Manajemen Laba Terhadap Efisiensi Bank Konvensional Di Indonesia

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