Articlehybrid2014

Accounting Standards, Goodwill Impairment and Earnings Management in Malaysia

Murad Yousef Abuaddous · Mustafa Mohd Hanefah · Nur Hidayah Laili

14 citations0/0 files storedInternational Journal of Economics and Finance

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Auditing, Earnings Management, Governance Accounting Theory and Financial Reporting Corporate Governance and Financial Management

Abstract

This paper has two objectives. The first is to investigate whether the provision of MFRS 136 (that is equivalent to IAS 36) allows for an earnings management technique termed “big bath” in Bursa Malaysia and, whether the change in firms’ CEOs plays a role in goodwill impairment loss recognition. The second objective is to examine the application of goodwill impairment loss recognition under the provision of MFRS136 in Bursa Malaysia between 2011–2012, using a “Mann-Whitney U” test. Our findings suggest that companies utilize goodwill impairment to take a “bath” regarding earnings management. Moreover, we find that Malaysian companies struggle to understand the ambiguity of the Value in Use (VIU) method under the MFRS 136 as they tend to take extreme accounting treatment strategies. Finally, we find that the new CEOs in Malaysian companies are more conservative in accounting treatment than CEOs with long tenure.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 14 citations exist upstream.

References

1996Causes and Effects of Discretionary Asset Write-Offs 2012Evidence on the use of unverifiable estimates in required goodwill impairment 2006Accounting Discretion in Fair Value Estimates: An Examination of SFAS 142 Goodwill Impairments 2001Earnings management: a perspective 2004An Examination of Long-Lived Asset Impairments 2005A Review and Integration of Empirical Research on Materiality: Two Decades Later 1996An Investigation of Asset Write-Downs and Concurrent Abnormal Accruals 2011Accounting Discretion in Goodwill Impairments: UK Evidence

Cited by

2020The Impact of Earnings Management on Dividend Policy: Evidence From Kuwait 2015Do Canadian Companies Employ Big Bath Accounting When Recording Goodwill Impairment?2020Earnings Management Behavior in Malaysia: The Role of Ownership Structure and External Auditing

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.