The impact of new regulations on earnings management among Malaysian listed firms

We examine the impact of the establishment of the Audit Oversight Board (AOB) on audit effort and the effect of the introduction of provisions 317A and 320A of the Capital Markets and Services Act (CMSA) and earnings management. Thus, auditors have to put in more effort, which requires them to incre...

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Main Authors:	Abdullah, Shamsul Nahar, Che A Halim, Nur Fajrina, Puat Nelson, Sherliza
Format:	Conference or Workshop Item
Language:	English English
Published:	2014
Subjects:	HF5387 Business ethics
Online Access:	http://irep.iium.edu.my/39968/ http://irep.iium.edu.my/39968/ http://irep.iium.edu.my/39968/4/WBI8-92014.pdf http://irep.iium.edu.my/39968/5/impact_of_new_regulation-compiled.pdf

id	iium-39968
recordtype	eprints
spelling	iium-399682018-05-23T05:32:47Z http://irep.iium.edu.my/39968/ The impact of new regulations on earnings management among Malaysian listed firms Abdullah, Shamsul Nahar Che A Halim, Nur Fajrina Puat Nelson, Sherliza HF5387 Business ethics We examine the impact of the establishment of the Audit Oversight Board (AOB) on audit effort and the effect of the introduction of provisions 317A and 320A of the Capital Markets and Services Act (CMSA) and earnings management. Thus, auditors have to put in more effort, which requires them to increase audit fees to compensate the increase in hours spent on an engagement. As for Sections 317A and 320A of the CMSA, the objective is to ensure the independent directors are more effective in discharging their monitoring roles. The data for the study is obtained from secondary data (annual reports). The final data sample comprises 2,124 observations collected from the annual reports of 708 firms for three years from 2009–2011, which covers the periods before and after the establishment of the AOB. The results indicate that there is an increase in audit effort from pre- to post-AOB. The regression analyses also reveal the role of board independence in reducing earnings management after the new regime was enforced. 2014-12-08 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/39968/4/WBI8-92014.pdf application/pdf en http://irep.iium.edu.my/39968/5/impact_of_new_regulation-compiled.pdf Abdullah, Shamsul Nahar and Che A Halim, Nur Fajrina and Puat Nelson, Sherliza (2014) The impact of new regulations on earnings management among Malaysian listed firms. In: World Business, Finance and Management Conference, 8th-9th December 2014, Rendevous Hotel, Auckland, New Zealand. http://wbiworldconpro.com/uploads/new-zealand-conference-2014-december/accounting/1417925581_103-Shamsul.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HF5387 Business ethics
spellingShingle	HF5387 Business ethics Abdullah, Shamsul Nahar Che A Halim, Nur Fajrina Puat Nelson, Sherliza The impact of new regulations on earnings management among Malaysian listed firms
description	We examine the impact of the establishment of the Audit Oversight Board (AOB) on audit effort and the effect of the introduction of provisions 317A and 320A of the Capital Markets and Services Act (CMSA) and earnings management. Thus, auditors have to put in more effort, which requires them to increase audit fees to compensate the increase in hours spent on an engagement. As for Sections 317A and 320A of the CMSA, the objective is to ensure the independent directors are more effective in discharging their monitoring roles. The data for the study is obtained from secondary data (annual reports). The final data sample comprises 2,124 observations collected from the annual reports of 708 firms for three years from 2009–2011, which covers the periods before and after the establishment of the AOB. The results indicate that there is an increase in audit effort from pre- to post-AOB. The regression analyses also reveal the role of board independence in reducing earnings management after the new regime was enforced.
format	Conference or Workshop Item
author	Abdullah, Shamsul Nahar Che A Halim, Nur Fajrina Puat Nelson, Sherliza
author_facet	Abdullah, Shamsul Nahar Che A Halim, Nur Fajrina Puat Nelson, Sherliza
author_sort	Abdullah, Shamsul Nahar
title	The impact of new regulations on earnings management among Malaysian listed firms
title_short	The impact of new regulations on earnings management among Malaysian listed firms
title_full	The impact of new regulations on earnings management among Malaysian listed firms
title_fullStr	The impact of new regulations on earnings management among Malaysian listed firms
title_full_unstemmed	The impact of new regulations on earnings management among Malaysian listed firms
title_sort	impact of new regulations on earnings management among malaysian listed firms
publishDate	2014
url	http://irep.iium.edu.my/39968/ http://irep.iium.edu.my/39968/ http://irep.iium.edu.my/39968/4/WBI8-92014.pdf http://irep.iium.edu.my/39968/5/impact_of_new_regulation-compiled.pdf
first_indexed	2023-09-18T20:57:23Z
last_indexed	2023-09-18T20:57:23Z
_version_	1777410394573242368

The impact of new regulations on earnings management among Malaysian listed firms

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