CFO attributes and accounting conservatism: evidence from Malaysia

IF 2.1 Q2 BUSINESS, FINANCE
Ismaanzira Ismail, Rohami Shafie, K. Ismail
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引用次数: 4

Abstract

Purpose This paper aims to examine whether conditional conservatism is affected by chief financial officer (CFO) attributes as this issue is understudied in Malaysia. Given that CFOs have a direct responsibility for financial reporting, therefore, their individual attributes are important in influencing conservatism in financial reporting. Design/methodology/approach This study uses non-financial listed firms in the Main Market of Bursa Malaysia from the years 2016 until 2019. Findings The results show that CFOs’ attributes, namely, gender, age, education level and ethnicity, affect earnings conservatism. To test for robustness, the authors use difference-in-difference, propensity score-matching and unconditional conservatism, namely, market-to-book ratio and the authors find the results hold with an exception for age and education level. Further, the effect of these attributes is more profound in non-Big4 audited firms, suggesting that CFO attributes act as a substitute mechanism for lower audit quality. Originality/value This study complements existing studies by documenting the first evidence on the significant effects of CFOs’ attributes in influencing accounting conservatism in an emerging country, namely, Malaysia. This is the first paper, to the humble knowledge, that examines CFOs’ attributes on accounting conservatism in Malaysia.
CFO属性与会计稳健性:来自马来西亚的证据
本文旨在研究条件保守主义是否受到首席财务官(CFO)属性的影响,因为这个问题在马来西亚尚未得到充分研究。鉴于cfo对财务报告负有直接责任,因此,他们的个人属性在影响财务报告的稳健性方面很重要。设计/方法/方法本研究使用2016年至2019年马来西亚证交所主要市场的非金融上市公司。研究结果表明,财务总监的属性,即性别、年龄、教育程度和种族,会影响收益保守性。为了检验稳健性,作者使用了差异中的差异,倾向得分匹配和无条件保守性,即市净率,作者发现结果保持不变,但年龄和教育水平例外。此外,这些属性对非四大审计事务所的影响更为深远,这表明CFO属性是审计质量降低的替代机制。原创性/价值本研究通过记录有关首席财务官属性在影响新兴国家(即马来西亚)会计稳健性方面的显着影响的第一个证据,补充了现有的研究。据我所知,这是第一篇研究马来西亚财务总监在会计稳健性上的属性的论文。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
Pacific Accounting Review
Pacific Accounting Review BUSINESS, FINANCE-
CiteScore
3.80
自引率
9.50%
发文量
36
期刊介绍: Pacific Accounting Review is a quarterly journal publishing original research papers and book reviews. The journal is supported by all New Zealand Universities and has the backing of academics from many universities in the Pacific region. The journal publishes papers from both empirical and theoretical forms of research into current developments in accounting and finance and provides insight into how present practice is shaped and formed. Specific areas include but are not limited to: - Emerging Markets and Economies - Political/Social contexts - Financial Reporting - Auditing and Governance - Management Accounting.
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