Publication: Relationship between corporate governance mechanisms and earnings management in Malaysian government linked companies (GLCs)
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Date
2025-12-29
Authors
Deneskumar s/o Krishnan
Rubeni d/o Sarawanabawan
Shavinder Kaur d/o Mahinder Singh
Thiviya d/o Selvamani
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Abstract
A well governed organization has the ability to minimize and even address the issue
ofearnings management. However, ascorporate governance continues to bea subject ofconcern, earnings management stillemerges asan unsettled issue. Hence, thisstudy attempts to investigate the relationship between corporate governance mechanisms and earnings management in the Government Linked Companies (GLCs) in Malaysia since less prior researches have included GLCs in their studies. In order to achieve this objective, a total of 16 GLCs from the G20 list were selected and analyzed. The required data was extracted from the annual reports of respective GLCs for a period of three years from year 2014 until year 2016. Corporate governance mechanisms namely CEO duality, board meetings, audit committee meetings and cross directorship were employed as the independent variables of this study and discretionary accruals was used as proxy for the earnings management. Findings from thestudy show that corporate governance mechanisms have no relationship with the earning$ management activities of GLCs.
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Keywords
Corporate governance , Corporate profits