Accounting Expertise in the Audit Committee and Earnings Management

Business and Economic Horizons Pub Date : 2018-01-01 DOI:10.15208/BEH.2018.33

M. Al-Absy, K. Ismail, Sitraselvi Chandren

引用次数: 15

Abstract

This study attempts to investigate the influence of accounting expertise in the AC on the level of accrual earnings management (AEM) in Malaysian firms by using two proxies, the Modified Jones Models by Dechow et al. (1995) and Kasznik (1999). A sample of 143 firms with slight positive earnings were selected from the Bursa Malaysia Main Market for 2013, 2014 and 2015. Using panel data regression, this study shows that accounting expertise in the AC does not mitigate AEM. The accounting expertise of the AC directors and chairman and the AC’s balanced accounting expertise have a positive relationship with attitude for AEM. In line with prior studies, this paper concludes that AC directors are either not truly independent or do not have time or energy to mitigate earnings management practices. Thus, more policies are needed to strengthen the independence of the AC and ensure the members carry out their duties more responsibly.

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审计委员会和盈余管理方面的会计专业知识

本研究试图通过使用两个代理，即Dechow等人(1995)和Kasznik(1999)的修正琼斯模型，来调查AC会计专业知识对马来西亚公司应计盈余管理(AEM)水平的影响。从2013年、2014年和2015年马来西亚证券交易所主要市场中选择了143家略微盈利的公司作为样本。使用面板数据回归，本研究表明，会计专业知识在AC并不缓解AEM。AC董事、董事长的会计专业知识和AC的平衡会计专业知识与AEM的态度存在正相关关系。与先前的研究一致，本文得出结论，AC董事要么不是真正的独立，要么没有时间或精力来缓解盈余管理实践。因此，需要更多的政策来加强咨询委员会的独立性，确保成员更负责任地履行职责。

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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Business and Economic Horizons ECONOMICS-

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