Management Motives and Firm Financial Misstatements in Malaysia
This paper discusses issues concerning management motives, which influenced by the situational pressures that lead to the occurrence of financial misstatements. The situational pressures and management motives are measured using financial distress, family ownership, the existence of founder on the f...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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EconJournals
2016-07-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | http://mail.econjournals.com/index.php/ijefi/article/view/2684 |
| _version_ | 1797908556763103232 |
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| author | Alfiatul Rohmah Mohamed Hussain Zuraidah Mohd Sanusi Sakthi Mahenthiran Suhaily Hasnan |
| author_facet | Alfiatul Rohmah Mohamed Hussain Zuraidah Mohd Sanusi Sakthi Mahenthiran Suhaily Hasnan |
| author_sort | Alfiatul Rohmah Mohamed Hussain |
| collection | DOAJ |
| description | This paper discusses issues concerning management motives, which influenced by the situational pressures that lead to the occurrence of financial misstatements. The situational pressures and management motives are measured using financial distress, family ownership, the existence of founder on the firm's board and earnings management of Malaysian public listed firms (referred to as PLCs) that influence the occurrence of financial misstatements. Results show that the existence of founder on the firm's board (FOUNDER) is positively significant while family ownership (FAMOWN) is negatively significant determinants of the occurrence of financial misstatement proxy by financial statement restatements. Two other variables namely financial distress (DISTRESS) and earnings management (EM) interact significantly and positively with financial misstatements. Additionally, FAMOWN positively interacts with EM to affect the occurrence of financial misstatements. Findings reveal that the extent of EM influences financially distressed firms and family-owned firms on the likelihood of financial misstatements by Malaysian PLCs.
Keywords: Management motives, financial misstatements, financial statement restatements, Malaysia
JEL Classification: G3
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| first_indexed | 2024-04-10T10:54:42Z |
| format | Article |
| id | doaj.art-c873813254074696a5744f0d12efb26b |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T10:54:42Z |
| publishDate | 2016-07-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-c873813254074696a5744f0d12efb26b2023-02-15T16:20:02ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382016-07-0164SManagement Motives and Firm Financial Misstatements in MalaysiaAlfiatul Rohmah Mohamed HussainZuraidah Mohd SanusiSakthi MahenthiranSuhaily HasnanThis paper discusses issues concerning management motives, which influenced by the situational pressures that lead to the occurrence of financial misstatements. The situational pressures and management motives are measured using financial distress, family ownership, the existence of founder on the firm's board and earnings management of Malaysian public listed firms (referred to as PLCs) that influence the occurrence of financial misstatements. Results show that the existence of founder on the firm's board (FOUNDER) is positively significant while family ownership (FAMOWN) is negatively significant determinants of the occurrence of financial misstatement proxy by financial statement restatements. Two other variables namely financial distress (DISTRESS) and earnings management (EM) interact significantly and positively with financial misstatements. Additionally, FAMOWN positively interacts with EM to affect the occurrence of financial misstatements. Findings reveal that the extent of EM influences financially distressed firms and family-owned firms on the likelihood of financial misstatements by Malaysian PLCs. Keywords: Management motives, financial misstatements, financial statement restatements, Malaysia JEL Classification: G3 http://mail.econjournals.com/index.php/ijefi/article/view/2684 |
| spellingShingle | Alfiatul Rohmah Mohamed Hussain Zuraidah Mohd Sanusi Sakthi Mahenthiran Suhaily Hasnan Management Motives and Firm Financial Misstatements in Malaysia International Journal of Economics and Financial Issues |
| title | Management Motives and Firm Financial Misstatements in Malaysia |
| title_full | Management Motives and Firm Financial Misstatements in Malaysia |
| title_fullStr | Management Motives and Firm Financial Misstatements in Malaysia |
| title_full_unstemmed | Management Motives and Firm Financial Misstatements in Malaysia |
| title_short | Management Motives and Firm Financial Misstatements in Malaysia |
| title_sort | management motives and firm financial misstatements in malaysia |
| url | http://mail.econjournals.com/index.php/ijefi/article/view/2684 |
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