Director Networks, Political Connections and Earnings Quality in Malaysia
MetadataShow full item record
This article has been published in a revised form in Management and Organization Review http://doi.org/10.1017/mor.2020.26. This version is free to view and download for private research and study only. Not for re-distribution or re-use. © 2020 The International Association for Chinese Management Research
© 2020 The International Association for Chinese Management Research.
This paper investigates the relationship between director networks and earnings quality in Malaysia. Using data on 4,416 individual directors who served on the boards of 745 firms listed on Bursa Malaysia during 2011, we map the entire network of directors and generate measures to reflect the size and quality of information within the network. We find a negative and significant relationship between the overall connectedness of a director’s network and the firm’s earnings quality. In addition, we find a negative and significant relationship between the political connectedness of the director’s network and earnings quality. Our results are robust for different measures of earnings quality.
Showing items related by title, author, creator and subject.
Gist, Willie; Abdul Wahab, Effiezal (2021)Based on a sample of 2,034 Malaysian listed firm-year observations for the period 2007–2014, this study shows a negative relationship between dimensions of political patronage (i.e., politically connected firms and the ...
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 ...
Koshy, Paul; Seymour, Richard; Dockery, Alfred Michael (2016)This paper examines the effect of university quality, as proxied by institutional groupings, on the earnings outcomes of Australian university qualified persons. It uses data from the Household, Income and Labour Dynamics ...