Factors associated with financial restatements: evidence from Malaysia

This study examines seven factors associated with financial restatements in Malaysian publicly listed companies (PLCs). We hypothesize that two factors proxy for management rationalization, two for management motives and three for the opportunity to predict financial restatements. Our sample cons...

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Main Authors:	Suhaily Hasnan, Alfiatul Rohmah Hussain
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 2015
Online Access:	http://journalarticle.ukm.my/9524/ http://journalarticle.ukm.my/9524/ http://journalarticle.ukm.my/9524/1/11143-30909-1-PB.pdf

id	ukm-9524
recordtype	eprints
spelling	ukm-95242016-12-14T06:50:12Z http://journalarticle.ukm.my/9524/ Factors associated with financial restatements: evidence from Malaysia Suhaily Hasnan, Alfiatul Rohmah Hussain, This study examines seven factors associated with financial restatements in Malaysian publicly listed companies (PLCs). We hypothesize that two factors proxy for management rationalization, two for management motives and three for the opportunity to predict financial restatements. Our sample consists of 85 restatement firms and 85 no-restatement firms, listed on the Bursa Malaysia and have a complete set of data from 2005-2011. The objective of this study is to examine how rationalization, motive and weak governance lead to financial restatements in emerging economies, like Malaysia. With regard to rationalization, we find that founders are negatively and significantly associated with financial restatements while related party transactions (RPTs) are positively and significantly associated. Additionally, we find evidence that opportunity for restatement proxied by audit quality is negatively and significantly associated with financial restatements. Penerbit Universiti Kebangsaan Malaysia 2015 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/9524/1/11143-30909-1-PB.pdf Suhaily Hasnan, and Alfiatul Rohmah Hussain, (2015) Factors associated with financial restatements: evidence from Malaysia. Jurnal Pengurusan, 44 . pp. 1-20. ISSN 0127-2713 http://ejournal.ukm.my/pengurusan/issue/view/700
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	This study examines seven factors associated with financial restatements in Malaysian publicly listed companies (PLCs). We hypothesize that two factors proxy for management rationalization, two for management motives and three for the opportunity to predict financial restatements. Our sample consists of 85 restatement firms and 85 no-restatement firms, listed on the Bursa Malaysia and have a complete set of data from 2005-2011. The objective of this study is to examine how rationalization, motive and weak governance lead to financial restatements in emerging economies, like Malaysia. With regard to rationalization, we find that founders are negatively and significantly associated with financial restatements while related party transactions (RPTs) are positively and significantly associated. Additionally, we find evidence that opportunity for restatement proxied by audit quality is negatively and significantly associated with financial restatements.
format	Article
author	Suhaily Hasnan, Alfiatul Rohmah Hussain,
spellingShingle	Suhaily Hasnan, Alfiatul Rohmah Hussain, Factors associated with financial restatements: evidence from Malaysia
author_facet	Suhaily Hasnan, Alfiatul Rohmah Hussain,
author_sort	Suhaily Hasnan,
title	Factors associated with financial restatements: evidence from Malaysia
title_short	Factors associated with financial restatements: evidence from Malaysia
title_full	Factors associated with financial restatements: evidence from Malaysia
title_fullStr	Factors associated with financial restatements: evidence from Malaysia
title_full_unstemmed	Factors associated with financial restatements: evidence from Malaysia
title_sort	factors associated with financial restatements: evidence from malaysia
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	2015
url	http://journalarticle.ukm.my/9524/ http://journalarticle.ukm.my/9524/ http://journalarticle.ukm.my/9524/1/11143-30909-1-PB.pdf
first_indexed	2023-09-18T19:55:07Z
last_indexed	2023-09-18T19:55:07Z
_version_	1777406477184532480

Factors associated with financial restatements: evidence from Malaysia

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