Do environmentally sensitive companies engage in lesser earnings management behaviour? evidence from Malaysia

Mohd Sabrun, Ibrahim and Rusnah, Muhamad (2023) Do environmentally sensitive companies engage in lesser earnings management behaviour? evidence from Malaysia. Journal of Sustainable Finance & Investment, 13 (3). pp. 1252-1276. ISSN 2043-0809

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Abstract

Past studies have examined the influence of environmental information on earnings management practices. However, these studies have reported mixed findings and failed to establish a conclusive conclusion. Therefore, rather than re-examining the relationship between environmental disclosure and earnings management, this research offers a new perspective on earnings management based on a company’s sector, specifically, environmentally sensitive (ES) and environmentally non-sensitive (EN) sectors. This study analysed ten years of data (2008–2017) on Malaysian public listed companies. It was found that ES sectors are more likely to be involved in earnings management than EN sectors. This study’s findings could initiate policy revisions leading to sustainable, ethical and responsible financial reporting practices in the future.

Item Type:	Article
Uncontrolled Keywords:	Earnings management; Earnings manipulation; Environmentally sensitive sectors.
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting
Divisions:	Academic Faculties, Institutes and Centres > Faculty of Economics and Business Faculties, Institutes, Centres > Faculty of Economics and Business
Depositing User:	Ibrahim
Date Deposited:	21 Jul 2023 00:50
Last Modified:	21 Jul 2023 00:50
URI:	http://ir.unimas.my/id/eprint/42348

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• Do environmentally sensitive companies engage in lesser earnings management behaviour? evidence from Malaysia. (deposited 30 Nov 2022 00:28)
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