Level of agency cost driven by cultural and corruption and earnings management: Evidence of South East Asia countries

IF 1 Q4 MANAGEMENT

Intangible Capital Pub Date : 2018-09-28 DOI:10.3926/ic.1289

Andi Manggala Putra, Gagaring Pagalung, A. Habbe

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引用次数: 4

Abstract

Purpose: This study scrutinises the correlation between earnings quality and agency cost based on corruption level and cultural values in six South-East Asian (SEA) countries: Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam.Design/methodology: We restrict categorisation of each SEA country whether they have low or high agency cost. This study employs 581 firm-years observations from the 30 biggest market capitalisation firms of six SEA countries. We run multiple regressions of three main accrual models for main analysis (Jones, 1991; Dechow et al., 1995; Kasznik, 1999) to get discretionary accruals.Findings: Results show that firms in low agency cost countries have lower earnings quality, and indicate that earnings management behaviour in this study is efficient rather than detrimental. Furthermore, results present that firms with bigger size engage less in earnings management conduct compared to their counterparts.Originality/value: This study provides broader acknowledgement of how cultural values and corruption and their assumed correlation to agency cost could affect earnings management behaviour in South East Asia. We use a single proxy of high/low agency cost based on national cultural and corruption index.

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文化、腐败和盈余管理驱动的代理成本水平:东南亚国家的证据

目的:本研究以印尼、马来西亚、菲律宾、新加坡、泰国和越南六个东南亚国家为研究对象，考察基于腐败程度和文化价值观的盈余质量与代理成本之间的相关性。设计/方法:我们限制每个东南亚国家的分类，无论他们的代理成本是低还是高。本研究采用了来自东南亚6个国家的30家市值最大的公司的581家公司年的观察结果。我们对三种主要的权责发生制模型进行多元回归分析(Jones, 1991;Dechow et al.， 1995;Kasznik, 1999)获得可自由支配的应计利润。研究结果表明，低代理成本国家的企业盈余质量较低，表明本研究中的盈余管理行为是有效的，而不是有害的。此外，研究结果表明，规模越大的公司参与盈余管理行为的程度越低。原创性/价值:本研究对文化价值观和腐败及其与代理成本的假定相关性如何影响东南亚盈余管理行为提供了更广泛的认识。我们使用基于国家文化和腐败指数的高/低代理成本的单一代理。

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

Intangible Capital MANAGEMENT-

CiteScore

1.50

自引率

16.70%

发文量

审稿时长

33 weeks

期刊介绍： The aim of Intangible Capital is to publish theoretical and empirical articles that contribute to contrast, extend and build theories that contribute to advance our understanding of phenomena related with management, and the management of intangibles, in organizations, from the perspectives of strategic management, human resource management, psychology, education, IT, supply chain management and accounting. The scientific research in management is grounded on theories developed from perspectives taken from a diversity of social sciences. Intangible Capital is open to publish articles that, from sociology, psychology, economics and industrial organization contribute to the scientific development of management and organizational science. Intangible Capital publishes scholar articles that contribute to contrast existing theories, or to build new theoretical approaches. The contributions can adopt confirmatory (quantitative) or explanatory (mainly qualitative) methodological approaches. Theoretical essays that enhance the building or extension of theoretical approaches are also welcome. Intangible Capital selects the articles to be published with a double bind, peer review system, following the practices of good scholarly journals. Intangible Capital publishes three regular issues per year following an open access policy. On-line publication allows to reduce publishing costs, and to make more agile the process of reviewing and edition. Intangible Capital defends that open access publishing fosters the advance of scientific knowledge, making it available to everyone. Intangible Capital publishes articles in English, Spanish and Catalan.