A Manifestation of Accounting Conservatism: A Case Study in Malaysia

• 발행기관: 한국유통과학회
• 저자명: Yvonne Joseph ASON Imbarine BUJANG Agnes Paulus JIDWIN Jamaliah SAID
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.2, 365~371쪽, 전체 7쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.02.28

영문 초록

In the wake of several high-profile corporate accounting scandals, there has been evidence that companies are more eager to hire Chief Executive Officers (CEOs) with an accounting background. This signals that CEOs with an accounting background are recognized and trusted by the corporate world to boost the quality of financial reporting of a company. If it is so, in the context of combating the earnings management, hiring CEOs with an accounting background (being a conservative accounting practitioner), could become one of the effective internal corporate governance mechanisms (CGM) to bring down the earnings management activities. This study attempts to provide insight into the level of conservatism of the CEO with an accounting background. Following Basu (1997) and Khan and Watt (2009), the firm-year measure of conservatism (C_Score) was obtained, which later was associated with the accounting education of the CEO to determine their relationship. As expected, CEOs with accounting background exhibit a higher level of moral reasoning than their non – accounting educated counterparts. The finding of this study is useful to persuade the policymaker to consider lifting the trend of hiring a CEO with an accounting background as one of the best practices that the companies can work out to lessen earnings management activities.

목차

1. Introduction

2. Literature Review

3. Data and Methodology

4. Findings and Discussions

5. Conclusion and Recommendation

키워드

Earnings Management CEO Accounting Background Accounting Conservatism