CORPORATE GOVERNANCE AND EARNINGS MANAGEMENT: EMPIRICAL EVIDENCE FROM MALAYSIAN AND NIGERIAN BANKS
Journal Title: Asian Journal of Management Sciences and Education - Year 2013, Vol 2, Issue 4
Abstract
The objective of this study as a pioneer is to investigate the likelihood of virtually all key elements of corporate governance in reducing the scope of banks earnings management in both developed and emerging economies. The Modified Jones Model is explored to investigate earnings management. Investigations into the differences in key corporate governance structure including board independence, composition, size, frequency of board meeting, leadership independence, audit committee existence and size, audit committee chairman independence, frequency of audit committee meeting, separation of roles of chairman of board and CEO, auditors status, Basel II compliance were equally made. The sample of this study consists of all the listed Nigerian banks and Malaysian commercial banks for year 2007- 2011. For Nigerian banks the earnings management has a negative mean, which means that the total accrual was negative in the majority of the sample. On the other hand, total accruals have a positive mean for Malaysian sample banks. Consequently, the residual value in the equation (et) was higher for Nigerian banks compared to Malaysian banks, indicating respectively, lower/higher accruals and earnings quality. Key aspects of corporate governance have positive or negative association with earnings management. While these are mostly lacking in Nigerian banks’ corporate governance structure, resulting in the poor accrual and earnings quality, high accruals and earnings quality of Malaysian banks is traceable to good corporate governance.
Authors and Affiliations
Onalo Ugbede, Mohd lizam, Ahmad Kaseri
Keywords
Related Articles
- EP ID EP146721
- DOI -
- Views 128
- Downloads 0
School System Improvement: Public vs. Independent Education Dichotomy between the Rock and the Hard Place; in the Lenses of an International Educator and a 16 Year-Old US Teenager
One of the most robust findings in years in education, research, and policy implementation is that some policymakers usually know shockingly very little about education per se; and problems for which they purport to make...
Advertising and Consumers Exploitation an Observational Study of Pakistani Media
The principle of “Caveat Emptor” which meant buyer beware governed the relationship between seller and the buyer has changed. In the era of open markets buyer and seller can face to face, seller exhibited his goods and b...
Impacts of Transformational Leadership Style, Organizational Environment and Organizational Culture on Organizational Performance
The research aims at testing and analysing the impacts of transformational leadership style, organizational environment and organizational culture on organizational performance in municipal governance of Banjar Baru, Sou...
STUDY OF STRATEGIES FOR ENHANCEMENT OF READING SKILLS: PERCEPTIONS OF PRIMARY SCHOOL TEACHERS
This study investigated that Pakistan Reading Project (PRP) investment the reading technique of the native language in early grade of primary schools of Sindh. The study aimed on requiring that to establish the objective...
AN ASSESSMENT OF THE POTENTIAL OF ICT ADOPTION IN IMPROVING SERVICE DELIVERY IN PRISONS AND CORRECTIONAL FACILITIES: A CASE OF CHIKURUBI MAXIMUM PRISON, ZIMBABWE
Technological innovations have transformed the way prisoners are admitted, supervised and followed up through the criminal justice system. This study examines the potential of Information and Communication Technology (IC...