Culture and corruption-driven agency costs and earnings management: evidence from south east Asian countries
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Cita com:
hdl:2117/126957
Tipus de documentArticle
Data publicació2018-12
EditorOmniaScience
Condicions d'accésAccés obert
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Reconeixement-NoComercial 4.0 Internacional
Abstract
Purpose: This study scrutinises the correlation between earnings quality and agency cost based on corruption level and cultural values in six South-East Asian (SEA) countries: Indonesia, Malaysia, Philippines, Singapore, Thailand, and Vietnam.
Design/methodology: We restrict categorisation of each SEA country whether they have low or high agency cost. This study employs 581 firm-years observations from the 30 biggest market capitalisation firms of six SEA countries. We run multiple regressions of three main accrual models for main analysis (Jones, 1991; Dechow et al., 1995; Kasznik, 1999) to get discretionary accruals.
Findings: Results show that firms in low agency cost countries have lower earnings quality, and indicate that earnings management behaviour in this study is efficient rather than detrimental. Furthermore, results present that firms with bigger size engage less in earnings management conduct compared to their counterparts.
Originality/value: This study provides broader acknowledgement of how cultural values and corruption and their assumed correlation to agency cost could affect earnings management behaviour in South East Asia. We use a single proxy of high/low agency cost based on national cultural and corruption index.
Localització
CitacióPutra, A. M.; Pagalung, G.; Habbe, A. H. Culture and corruption-driven agency costs and earnings management: evidence from south east Asian countries. "Intangible Capital", Desembre 2018, vol. 14, núm. 4, p. 499-517.
Dipòsit legalB-33375-2004
ISSN1697-9818
Col·leccions
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Culture and corruption-driven agency.pdf | 303,6Kb | Visualitza/Obre |