Family Ownership and Earnings Management in Malaysia

Journal of Advanced Research in Business and Management Studies
Volume 15, No. 1, June 2019, Pages 53-60

Shaker Al-Duais1,2,*, Mazrah Malek1, Mohamad Ali Abdul Hamid3

1 Tunku Puteri Intan Safinaz School of Accountancy (TISSA), Universiti Utara Malaysia, Kedah, Malaysia
2 Accounting Department, Faculty of Administrative Sciences, IBB University, IBB, Yemen
3 Putra Business School, University Putra Malaysia, 43400 Serdang, Selangor, Malaysia
*Corresponding author: shakeralduais@gmail.com

Cite this articleMLA
Shaker, Al-Duais, et al. "Family Ownership and Earnings Management in Malaysia." Journal of Advanced Research in Business and Management Studies 15.1 (2019): 53-60.
APA
Shaker, A. D., Mazrah, M., & Mohamad Ali, A. H.(2019). Family Ownership and Earnings Management in Malaysia. Journal of Advanced Research in Business and Management Studies, 15(1), 53-60.
Chicago
Shaker Al-Duais, Mazrah Malek, and Mohamad Ali Abdul Hamid."Family Ownership and Earnings Management in Malaysia." Journal of Advanced Research in Business and Management Studies. 15, no. 1 (2019): 53-60.
Harvard
Shaker, A.D., Mazrah, M., Mohamad Ali, A.H., 2019. Family Ownership and Earnings Management in Malaysia. Journal of Advanced Research in Business and Management Studies 15(1), pp. 53-60.
Vancouver
Shaker AD, Mazrah M, Mohamad Ali AH. Family Ownership and Earnings Management in Malaysia. Journal of Advanced Research in Business and Management Studies. 2019;15(1): 53-60.

KEYWORDS

Earnings Management; accrual earnings management; real earnings management; family ownership

ABSTRACT

This paper proposes a conceptual framework to investigate the role of family ownership for mitigating earnings management (accrual & real). Family ownership is among the corporate governance primary mechanisms that have been a focus of many researchers and scholars. The present study argues that firms with family ownership are less likely to allow earnings management because they have typically invested a lot of their private fortune in the firm and families are more concerned about the survival of the firm and its reputation; thus, they have a strong motivation to monitor management very well. Despite that, there is a lack of prior studies that examine these relationships in developing countries. So, the main objective of this study was to bridge this gap and try to enrich the existing literature.

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