Corporate governance mechanisms and earnings management in Malaysian government linked companies. The impact of GLCs transformation policy

As the major shareholder, Malaysian Government in 2004 has embarked on the Government linked Companies (GLCs) transformation policy program that mainly emphasizes on enhancing the corporate governance mechanisms of the State owned Enterprises (SOEs) in order to enhance effectiveness of the board. T...

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Main Authors:	Mohamad, Muslim Har Sani, Abdul Rashid, Hafiz Majdi, Ali Mohammed Shawtari, Fekri
Format:	Conference or Workshop Item
Language:	English
Published:	2010
Subjects:	HF Commerce HG Finance
Online Access:	http://irep.iium.edu.my/7775/ http://irep.iium.edu.my/7775/1/Dr_Muslim-Earnings_MGt_%2B_GLC-final.pdf

id	iium-7775
recordtype	eprints
spelling	iium-77752013-04-02T06:18:51Z http://irep.iium.edu.my/7775/ Corporate governance mechanisms and earnings management in Malaysian government linked companies. The impact of GLCs transformation policy Mohamad, Muslim Har Sani Abdul Rashid, Hafiz Majdi Ali Mohammed Shawtari, Fekri HF Commerce HG Finance As the major shareholder, Malaysian Government in 2004 has embarked on the Government linked Companies (GLCs) transformation policy program that mainly emphasizes on enhancing the corporate governance mechanisms of the State owned Enterprises (SOEs) in order to enhance effectiveness of the board. The paper aims to examine the impact of corporate governance mechanisms as embedded in the transformation program on the practice of earnings management. In particular, the study uses data for two periods of time (pre and post transformation), and examine whether the period of post transformation policy has experienced any improvement of board monitoring role in curbing earnings management activities. The main findings show that there is an increase of earnings management activities in post transformation period. Further, the findings revealed that all corporate governance mechanisms have little impact to curb earnings management activities except for board meetings and leadership structure in the post transformation period.The board meetings and separate role of two top positions in the companies were shown to have negative impact on earnings management post transformation policy and that relationship do not hold for the period pre transformation policy. Although the study has shown positive preliminary impact of tightening corporate governance in GLCs, scope to expand the research was also discussed. 2010-12-08 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/7775/1/Dr_Muslim-Earnings_MGt_%2B_GLC-final.pdf Mohamad, Muslim Har Sani and Abdul Rashid, Hafiz Majdi and Ali Mohammed Shawtari, Fekri (2010) Corporate governance mechanisms and earnings management in Malaysian government linked companies. The impact of GLCs transformation policy. In: International Conference Accounting and Finance Conference 2010, 8-9 December, 2010, Kompleks Pentadbiran Kerajaan Persekutuan. (Unpublished)
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HF Commerce HG Finance
spellingShingle	HF Commerce HG Finance Mohamad, Muslim Har Sani Abdul Rashid, Hafiz Majdi Ali Mohammed Shawtari, Fekri Corporate governance mechanisms and earnings management in Malaysian government linked companies. The impact of GLCs transformation policy
description	As the major shareholder, Malaysian Government in 2004 has embarked on the Government linked Companies (GLCs) transformation policy program that mainly emphasizes on enhancing the corporate governance mechanisms of the State owned Enterprises (SOEs) in order to enhance effectiveness of the board. The paper aims to examine the impact of corporate governance mechanisms as embedded in the transformation program on the practice of earnings management. In particular, the study uses data for two periods of time (pre and post transformation), and examine whether the period of post transformation policy has experienced any improvement of board monitoring role in curbing earnings management activities. The main findings show that there is an increase of earnings management activities in post transformation period. Further, the findings revealed that all corporate governance mechanisms have little impact to curb earnings management activities except for board meetings and leadership structure in the post transformation period.The board meetings and separate role of two top positions in the companies were shown to have negative impact on earnings management post transformation policy and that relationship do not hold for the period pre transformation policy. Although the study has shown positive preliminary impact of tightening corporate governance in GLCs, scope to expand the research was also discussed.
format	Conference or Workshop Item
author	Mohamad, Muslim Har Sani Abdul Rashid, Hafiz Majdi Ali Mohammed Shawtari, Fekri
author_facet	Mohamad, Muslim Har Sani Abdul Rashid, Hafiz Majdi Ali Mohammed Shawtari, Fekri
author_sort	Mohamad, Muslim Har Sani
title	Corporate governance mechanisms and earnings management in Malaysian government linked companies. The impact of GLCs transformation policy
title_short	Corporate governance mechanisms and earnings management in Malaysian government linked companies. The impact of GLCs transformation policy
title_full	Corporate governance mechanisms and earnings management in Malaysian government linked companies. The impact of GLCs transformation policy
title_fullStr	Corporate governance mechanisms and earnings management in Malaysian government linked companies. The impact of GLCs transformation policy
title_full_unstemmed	Corporate governance mechanisms and earnings management in Malaysian government linked companies. The impact of GLCs transformation policy
title_sort	corporate governance mechanisms and earnings management in malaysian government linked companies. the impact of glcs transformation policy
publishDate	2010
url	http://irep.iium.edu.my/7775/ http://irep.iium.edu.my/7775/1/Dr_Muslim-Earnings_MGt_%2B_GLC-final.pdf
first_indexed	2023-09-18T20:17:18Z
last_indexed	2023-09-18T20:17:18Z
_version_	1777407873336213504

Corporate governance mechanisms and earnings management in Malaysian government linked companies. The impact of GLCs transformation policy

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