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Ms Aziatul Waznah Ghazali

Research project: Political Influence on Corporate Governance Mechanisms in Relation to Financial Reporting Quality of Malaysian Listed Firms

Abstract

Generally, financial reporting ought to convey a true and fair view of a firm's financial performance and business performance, but this is not always the case. Inevitably, earnings being among the measure of operational performance of a company is often subjected to the threat of managerial opportunism which would results in financial misreporting. Therefore, corporations, globally, are starting to response to the threat of managerial opportunism with intense internal corporate governance mechanisms. However, improvements of governance framework and accounting standards in recent years have in turn creates other methods of accounting manipulation. More and more firms are shifting from accrual earnings management (AEM) to real earnings management (REM). Compared to AEM, REM involves manipulating the timing or structuring of real business transactions, making it more strenuous to detect. It is also posited that REM would usually occurs before AEM. Due to differences between both AEM and REM, the impact of corporate governance may also differ. Existing corporate governance framework may not be as effective as it should be, and requires a re-examination.

Therefore, the current study considers the role of political influence and corporate governance in influencing the financial reporting quality of Malaysian listed firms.  In the institutional settings of an emerging economy such as Malaysia, political connections is a dilemma that plagued the business environment.  Malaysia provide a unique landscape for this study as it is a multi-racial country. Moreover, Malaysia represent a postcolonial country with a capital market that is characterized by substantial family ownership and significant political influence and governmental supervision. Primarily, the study examines the relationship between corporate governance mechanisms, political influence and financial reporting quality among Malaysian listed firms based on 643 firms continuously listed from 2010 to 2104. The current study is divided into two parts; the first part of the study focuses on the probable determinants for the occurrences of REM. Meanwhile, the second part of the study addresses the consequence of earnings management which is the accounting misstatement (AM). Additionally, this study also seeks to examine the moderating effect of political influence, including the Bumiputera policy, towards the financial reporting quality.

  • Research degree: PhD
  • Title of project: Political Influence on Corporate Governance Mechanisms in Relation to Financial Reporting Quality of Malaysian Listed Firms
  • Research supervisor: Dr Mohamed Nurullah
  • Other research supervisor: Dr Salma Ibrahim

Biography

My work focuses on the area of financial misreporting extending to other issues such as corporate governance, financial reporting quality, auditing, business ethics and related areas. Apart from being a full-PhD student, I am also a research associate at the Accounting Research Institute (ARI). Before pursuing my PhD study, I was an accounting lecturer at Universiti Teknologi MARA (UiTM), Malaysia. 

Areas of research interest

  • Corporate governance
  • Financial reporting quality
  • Auditing
  • Business ethics
  • Corporate Social Responsibility

Qualifications

  • Master of Research, Business and Management, Kingston University
  • MSc in International Accounting and Finance, University of Strathclyde
  • Bachelor of Accountancy with Honours, Universiti Teknologi MARA
  • Diploma in Accountancy, Universiti Teknologi MARA

Publications

  • Comparative Judgment of Novice and Expert on Internal Control Tasks: Assessment on Work Effort and Ethical Orientation, August 2014, Procedia - Social and Behavioral Sciences 145
  • Earnings Management: An Analysis of Opportunistic Behaviour, Monitoring Mechanism and Financial Distress, December 2015, Procedia Economics and Finance 28:190-201
  • Managerial Opportunism: Monitoring Financial Risk of Malaysian Shariah-compliant Companies, January 2018, Global Journal Al-Thaqafah (GJAT)

Conference papers

  • Comparative Judgment of Novice and Expert on Internal Control Tasks: Assessment on Work Effort and Ethical Orientation, International Conference on Corporate Governance & Strategic Management (ICGSM) 2014, 14-16 April 2014, Manchester, United Kingdom
  • Opportunistic Behaviour: Accounting Quality in Malaysian Shariah-Compliant Companies, International Conference on Islamic Perspective of Accounting, Finance, Economics and Management, (IPAFEM 2015), 7 -9 April 2015, Glasgow, United Kingdom
  • Earnings Management: An Analysis of Opportunistic Behaviour, Monitoring Mechanism and Financial Distress, 7th INTERNATIONAL CONFERENCE ON FINANCIAL CRIMINOLOGY 2015 13-14 April 2015,Wadham College, Oxford, United Kingdom
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