Curtin University Homepage
  • Library
  • Help
    • Admin

    espace - Curtin’s institutional repository

    JavaScript is disabled for your browser. Some features of this site may not work without it.
    View Item 
    • espace Home
    • espace
    • Curtin Research Publications
    • View Item
    • espace Home
    • espace
    • Curtin Research Publications
    • View Item

    After Enron: An Empirical Examination on Earnings Conservatism in Malaysia

    Access Status
    Fulltext not available
    Authors
    Abdul Wahab, Effiezal Aswadi
    Zain, M.
    Marzuki, M.
    Date
    2010
    Type
    Journal Article
    
    Metadata
    Show full item record
    Citation
    Abdul Wahab, E.A. and Zain, M. and Marzuki, M. 2010. After Enron: An Empirical Examination on Earnings Conservatism in Malaysia. Malaysian Accounting Review. 9 (1): pp. 19-41.
    Source Title
    Malaysian Accounting Review
    ISSN
    16754077
    URI
    http://hdl.handle.net/20.500.11937/17801
    Collection
    • Curtin Research Publications
    Abstract

    The failure of ENRON and subsequent demise of Arthur Andersen hasrenewed interest in earnings and audit research. This study examinesthe impact of ENRON debacle on earnings conservatism in Malaysia. Wehypothesised that in the period after ENRON, the auditors and managersof the firms have incentives to report more conservatively to avoid riskof litigation and to protect reputation capital. Based on a sample of 1043firm-years over the period of 2001 and 2002, we find that, on average,firms do report more conservatively in 2002. In addition, evidencesuggests that former Andersen clients report more conservatively in 2002relatively to non-Andersen clients. Further, we document similar resultsfor firms switching to from another Big 4 to another Big 4 auditing firmin 2002. Finally, we discover firms that did not switch in 2002 do reportmore conservatively in 2002. We conclude that the ENRON debacle havea profound impact on firms to report more timely earnings

    Related items

    Showing items related by title, author, creator and subject.

    • Influence of auditor quality and audit committee effectiveness on earnings conservatism of Malaysian public listed firms
      Ahamad Rapani, Nor Hanani (2011)
      This study investigates whether earnings conservatism is significantly higher amongst Malaysian publicly listed firms subject to higher standards of ‗direct custodian excellence‘ of the financial reporting system relative ...
    • An investigation of earnings management practices in Australian firms
      Sun, Lan (2009)
      Earnings management is an area in which managers are able to exercise discretion over financial reporting to achieve various objectives. Researchers have been investigating the pervasiveness of earnings management and ...
    • Income Smoothing Behaviour By Asian Transportation Firms
      Rusmin, Rusmin; Scully, Glennda; Tower, Greg (2013)
      figures. Using a sample of 1,094 transportation firm-year observations before and throughout theglobal financial crisis (GFC) period of 2006-2009 in seven Asian countries, the purpose of this study isto investigate whether ...
    Advanced search

    Browse

    Communities & CollectionsIssue DateAuthorTitleSubjectDocument TypeThis CollectionIssue DateAuthorTitleSubjectDocument Type

    My Account

    Admin

    Statistics

    Most Popular ItemsStatistics by CountryMost Popular Authors

    Follow Curtin

    • 
    • 
    • 
    • 
    • 

    CRICOS Provider Code: 00301JABN: 99 143 842 569TEQSA: PRV12158

    Copyright | Disclaimer | Privacy statement | Accessibility

    Curtin would like to pay respect to the Aboriginal and Torres Strait Islander members of our community by acknowledging the traditional owners of the land on which the Perth campus is located, the Whadjuk people of the Nyungar Nation; and on our Kalgoorlie campus, the Wongutha people of the North-Eastern Goldfields.