Authors : Nabilah Mahad, Nor Balkish Zakaria and Ida Suriya Ismail
Abstract: The primary objective of this study is to examine the relationship between board of director attributes (board independence, board meeting, board size and duality role) and the tendency of earnings manipulation. This study employed a sample of 334 Public Listed Companies in Malaysia from the year 2010-2012. The finding of this study shows that the board independence is positively related to earnings manipulation. This implies the higher the proportion of independent directors, the higher the propensity of earnings manipulation. The result also indicates that the board size is positively related to earnings manipulation. This suggests that the larger board size will increase earnings manipulation occurrences. However, the board meetings and duality role fail to show any significant relationship with earnings manipulation. The result of this study is robust after controlling the other firm-specific effects.
Nabilah Mahad, Nor Balkish Zakaria and Ida Suriya Ismail, 2015. Earnings Manipulation among Malaysian Firms: Have Boards Sufficiently Lent Their Governance Skills in Monitoring These Activities?. International Business Management, 9: 1243-1248.