CEO characteristics and financial restatement: The case of CEO turnover in Malaysia
This study examines the incidence of financial restatement in CEO turnover firms. Using 78 CEO turnover firms from 2008 to 2010 among nonfinancial institution, we find that the age of the CEO and forced turnover influence restatement in the year prior to CEO turnover. Specifically, older CEOs have...
| Main Authors: | , , , |
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| Format: | Monograph |
| Language: | English |
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Universiti Utara Malaysia
2014
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/12762/1/2%20%282%29.pdf |
| _version_ | 1825803062162227200 |
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| author | Ishak, Rokiah Md Yusof, Mohd 'Atef Amran, Noor Afza Aripin, Norhani |
| author_facet | Ishak, Rokiah Md Yusof, Mohd 'Atef Amran, Noor Afza Aripin, Norhani |
| author_sort | Ishak, Rokiah |
| collection | UUM |
| description | This study examines the incidence of financial restatement in CEO turnover firms.
Using 78 CEO turnover firms from 2008 to 2010 among nonfinancial institution, we find that the age of the CEO and forced turnover influence restatement in the year prior to CEO turnover. Specifically, older CEOs have higher probability of restating financial statement as they may wish to hold to the l
ast bonus/pay they would likely receive.We also document some evidence of management
entrenchment hypothesis that CEO ownership may lower financial restatement.Firm characteristics such as size, Big 4 and growth as measure by market to book
value have a positive relationship with restatement which suggests that big companies with high growth have higher probability of restatement.The study also supports the argument of debt as a monitoring cost as debt is argued to constraint opportunistic earnings management behavior including restatement. |
| first_indexed | 2024-07-04T05:50:45Z |
| format | Monograph |
| id | uum-12762 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T05:50:45Z |
| publishDate | 2014 |
| publisher | Universiti Utara Malaysia |
| record_format | eprints |
| spelling | uum-127622016-04-18T01:13:07Z https://repo.uum.edu.my/id/eprint/12762/ CEO characteristics and financial restatement: The case of CEO turnover in Malaysia Ishak, Rokiah Md Yusof, Mohd 'Atef Amran, Noor Afza Aripin, Norhani HG Finance This study examines the incidence of financial restatement in CEO turnover firms. Using 78 CEO turnover firms from 2008 to 2010 among nonfinancial institution, we find that the age of the CEO and forced turnover influence restatement in the year prior to CEO turnover. Specifically, older CEOs have higher probability of restating financial statement as they may wish to hold to the l ast bonus/pay they would likely receive.We also document some evidence of management entrenchment hypothesis that CEO ownership may lower financial restatement.Firm characteristics such as size, Big 4 and growth as measure by market to book value have a positive relationship with restatement which suggests that big companies with high growth have higher probability of restatement.The study also supports the argument of debt as a monitoring cost as debt is argued to constraint opportunistic earnings management behavior including restatement. Universiti Utara Malaysia 2014 Monograph NonPeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/12762/1/2%20%282%29.pdf Ishak, Rokiah and Md Yusof, Mohd 'Atef and Amran, Noor Afza and Aripin, Norhani (2014) CEO characteristics and financial restatement: The case of CEO turnover in Malaysia. Project Report. Universiti Utara Malaysia, Sintok. (Unpublished) |
| spellingShingle | HG Finance Ishak, Rokiah Md Yusof, Mohd 'Atef Amran, Noor Afza Aripin, Norhani CEO characteristics and financial restatement: The case of CEO turnover in Malaysia |
| title | CEO characteristics and financial restatement: The case of CEO turnover in Malaysia |
| title_full | CEO characteristics and financial restatement: The case of CEO turnover in Malaysia |
| title_fullStr | CEO characteristics and financial restatement: The case of CEO turnover in Malaysia |
| title_full_unstemmed | CEO characteristics and financial restatement: The case of CEO turnover in Malaysia |
| title_short | CEO characteristics and financial restatement: The case of CEO turnover in Malaysia |
| title_sort | ceo characteristics and financial restatement the case of ceo turnover in malaysia |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/12762/1/2%20%282%29.pdf |
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