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Audit committee chairman characteristics and earnings management: The influence of family chairman by Mujeeb Saif Mohsen Al-Absy; Ku Nor Izah Ku Ismail; Sitraselvi Chandren is a Business, Management and Accounting article available to read on EtoBox.

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Purpose The purpose of this paper is to examine the influence of the characteristics of audit committee chairman (ACC) (tenure, age, gender, ethnicity, accounting expertise and directorship) on earnings management (EM) practices. Design/methodology/approach The Jones model and modified Jones model by Dechowet al.(1995) were used to determine the discretionary accruals (DA) of 288 Malaysian listed firms with lowest positive earnings for the years 2013‒2015. Findings The results of the ordinary least squares regression indicate that only tenure, gender and ethnicity of the ACC are associated with DA. A further test was conducted by dividing firms into two groups: firms whose boards are chaired by a family member and firms whose boards are chaired by a non-family member. The results reveal that it is possible for firms whose boards are chaired by family members to cause the corporate governance (CG) mechanisms, particularly the audit committee, to lose their effectiveness in overcoming the EM problem. In addition, robustness tests were conducted by using panel data regression, where the results were found to be similar to the original regression results. Originality/value This study a

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Author

Mujeeb Saif Mohsen Al-Absy; Ku Nor Izah Ku Ismail; Sitraselvi Chandren

Publisher

Emerald

Published

2019

Language

EN

Field

Business, Management and Accounting (Social Sciences)