Corporate governance and earnings management: A study on the Malaysian family and non-family Owned PLCs

• Main Authors: Mansor, N., Che Ahmad, Ayoib, Ahmad Zaluki, Nurwati Ashikkin, Osman, A.H.
• Format: Article
• Language: English
• Published: Elsevier B.V. 2013
• Subjects: HD28 Management. Industrial Management
• Online Access: http://repo.uum.edu.my/12550/1/53e.pdf; http://repo.uum.edu.my/12550/; http://dx.doi.org/10.1016/S2212-5671(13)00238-4

This study supported the claim that corporate governance (CG) mechanisms are able to overcome earnings management (EM) activities specifically from the perspective of family owned companies (FOC) and the non-family owned companies (NFOC). A total sample of 264 public listed companies (PLCs), selected based on stratified samplings, were tested. The results showed that for FOC, only number of board meetings held; while for NFOC, independence of directors, audit committee, non-duality, audit committee size, in-house internal audit function and quality differentiated auditors are the CG mechanisms that are found to be able to assist in minimizing the EM activities.