Examining upper echelons managers’ characteristics on financial restatements

This study examines the effect of manager’s characteristics on financial restatements among Malaysian public listed firms. Manager’s characteristics in this study refer to the Chief Executive Officer’s (CEO) and Chairman of Audit Committee’s (CAC) characteristics in an organisation. Using content an...

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Main Authors: Syarifah Saffa’ Najwa Tuan Besar, Mazurina Mohd Ali, Erlane K Ghani
Format: Article
Language:English
Published: Centre of Sociological Research, Szczecin 2017-12-01
Series:Journal of International Studies
Subjects:
Online Access:http://jois.eu/?386,en_examining-upper-echelons-managers%E2%80%99-characteristics-on-financial-restatements
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author Syarifah Saffa’ Najwa Tuan Besar
Mazurina Mohd Ali
Erlane K Ghani
author_facet Syarifah Saffa’ Najwa Tuan Besar
Mazurina Mohd Ali
Erlane K Ghani
author_sort Syarifah Saffa’ Najwa Tuan Besar
collection DOAJ
description This study examines the effect of manager’s characteristics on financial restatements among Malaysian public listed firms. Manager’s characteristics in this study refer to the Chief Executive Officer’s (CEO) and Chairman of Audit Committee’s (CAC) characteristics in an organisation. Using content analysis on 750 annual reports of 150 public listed firms in Bursa Malaysia, this study analyses the relationship between CEO and CAC's characteristics and financial restatements. The results show that only CEO’s characteristics in terms of educational and functional background significantly affect the financial restatements of the listed firms but the results are positive. The implication of this study is that more thorough recruitment of top managers is needed as their specific characteristics affect the financial restatement decisions. This study provides new data for the regulatory bodies which can be used further in setting rules and regulations in relation to managers for preventing aggressive financial restatements among the public listed firms.
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publishDate 2017-12-01
publisher Centre of Sociological Research, Szczecin
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spelling doaj-art-00d1b3bf031044c2bf1d40759da5217e2025-08-20T01:59:10ZengCentre of Sociological Research, SzczecinJournal of International Studies2071-83302306-34832017-12-0110410.14254/2071-8330.2017/10-4/14Examining upper echelons managers’ characteristics on financial restatementsSyarifah Saffa’ Najwa Tuan Besar0Mazurina Mohd Ali1Erlane K Ghani2Faculty of Accountancy, Universiti Teknologi MARAFaculty of Accountancy, Universiti Teknologi MARAAccounting Research Institute, Universiti Teknologi MARAThis study examines the effect of manager’s characteristics on financial restatements among Malaysian public listed firms. Manager’s characteristics in this study refer to the Chief Executive Officer’s (CEO) and Chairman of Audit Committee’s (CAC) characteristics in an organisation. Using content analysis on 750 annual reports of 150 public listed firms in Bursa Malaysia, this study analyses the relationship between CEO and CAC's characteristics and financial restatements. The results show that only CEO’s characteristics in terms of educational and functional background significantly affect the financial restatements of the listed firms but the results are positive. The implication of this study is that more thorough recruitment of top managers is needed as their specific characteristics affect the financial restatement decisions. This study provides new data for the regulatory bodies which can be used further in setting rules and regulations in relation to managers for preventing aggressive financial restatements among the public listed firms.http://jois.eu/?386,en_examining-upper-echelons-managers%E2%80%99-characteristics-on-financial-restatementsFinancial restatementUpper Echelon theorymanagers’ characteristicslisted firmsMalaysia
spellingShingle Syarifah Saffa’ Najwa Tuan Besar
Mazurina Mohd Ali
Erlane K Ghani
Examining upper echelons managers’ characteristics on financial restatements
Journal of International Studies
Financial restatement
Upper Echelon theory
managers’ characteristics
listed firms
Malaysia
title Examining upper echelons managers’ characteristics on financial restatements
title_full Examining upper echelons managers’ characteristics on financial restatements
title_fullStr Examining upper echelons managers’ characteristics on financial restatements
title_full_unstemmed Examining upper echelons managers’ characteristics on financial restatements
title_short Examining upper echelons managers’ characteristics on financial restatements
title_sort examining upper echelons managers characteristics on financial restatements
topic Financial restatement
Upper Echelon theory
managers’ characteristics
listed firms
Malaysia
url http://jois.eu/?386,en_examining-upper-echelons-managers%E2%80%99-characteristics-on-financial-restatements
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