The Social Sciences
ISSN: Online 1993-6125ISSN: Print 1818-5800
Abstract
The objective of this study is to examine the real earnings management (by using discretionary expenses) that should capture the effect of real operations on the elements of corporate governance (board size and board independence). The sample of the study is Malaysian Public Listed Companies in year 2009-2012. Data were hand collected from the annual reports. Interestingly, this study contributes to the literature on earnings management by presenting evidence on the management of operational activities which has received little attention to date. Managers have the tendency to manipulate real activities during the year to meet certain earnings targets. However, this study evidences that corporate governance mechanism’s helps to combat real earnings management activities. A large board size and high number of independent non-executive director’s help to minimise the earnings management activities.
How to cite this article:
Noor Afza Amran, Rokiah Ishak and Kamarul Bahrain Abdul Manaf. The Influence of Real Earnings on Malaysian Corporate Board Structure.
DOI: https://doi.org/10.36478/sscience.2016.7258.7262
URL: https://www.makhillpublications.co/view-article/1818-5800/sscience.2016.7258.7262