Real Earnings Management in Family-Affiliated Firms: Empirical Evidence from Malaysia

W. A. Rahman, Noorhayati Mansor
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引用次数: 2

Abstract

Research aim:  This paper examines the effects of size and complex structure of family-affiliated business groups on Real Earnings Management (REM) practices in Malaysian listed firms. Design/Methodology/Approach: Family-affiliated business groups listed on Bursa Malaysia during the years 2006 to 2015 filtered using specific criteria were selected as the sample. STATA software was used to analyse the panel data, and two different regression models were run for the empirical testing to examine the effects of size and group complexity. Research finding: It is evidenced that the size and complexity structure of family-affiliated business groups are positively associated with REM, measured by abnormal cash flow from operations and abnormal discretionary expenses, but negatively associated with abnormal production cost. Theoretical contribution/Originality: Since previous studies based on Malaysian public listed firms focus on Accruals Earnings Manipulation (AEM), this study broadens the scope by providing empirical evidence on the relationship between family-affiliated firms’ characteristics and REM. Practitioner/ Policy implication: Investors, auditors, analysts and practitioners should consider family-affiliated firms as a factor that significantly induces earnings manipulation. The result is also relevant for regulators in regulating takeover rules or tax policy to affiliated groups in order to create incentives for them to maintain a specific size or complexity structure, or otherwise, be penalised for exceeding the size or complexity characteristics. Research limitation/ Implication: The results from this study may apply to Asian countries with similarities in family ownership to that in Malaysia. The findings, however, may not apply to developed countries where family concentration and pyramidal structure are not significant. Keywords: Real Earnings Management, Family-Affiliated Firms, Emerging Market, Entrenchment Effect, Malaysia Type of article: Research paper JEL Classification: M41
家族关联企业的真实盈余管理:来自马来西亚的经验证据
研究目的:本文探讨家族企业集团的规模和复杂结构对马来西亚上市公司真实盈余管理(REM)实践的影响。设计/方法/方法:选择2006年至2015年在马来西亚证券交易所上市的家族企业集团作为样本,使用特定标准进行筛选。采用STATA软件对面板数据进行分析,并运行两种不同的回归模型进行实证检验,以检验规模和群体复杂性的影响。研究发现:家族关联企业集团的规模和复杂结构与REM呈正相关,REM以异常的经营现金流和异常的可自由支配费用衡量,而与异常的生产成本负相关。理论贡献/独创性:由于先前基于马来西亚上市公司的研究主要关注应计盈余操纵(AEM),本研究通过提供关于家族关联公司特征与REM之间关系的实证证据扩大了研究范围。从业者/政策启示:投资者、审计师、分析师和从业者应将家族关联公司视为显著诱发盈余操纵的因素。这一结果也适用于监管机构对附属集团的收购规则或税收政策进行监管,以激励它们保持特定的规模或复杂结构,否则就会因超出规模或复杂特征而受到惩罚。研究局限/启示:本研究的结果可能适用于家族所有权与马来西亚相似的亚洲国家。然而,这些发现可能不适用于家庭集中度和金字塔结构不显著的发达国家。关键词:真实盈余管理、家族关联企业、新兴市场、堑壕效应、马来西亚文章类型:研究论文JEL分类:M41
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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