The Relationship between Ownership Structure and Real Earnings Management Practices: Evidence from Malaysian Public Companies

Faculty of Business
Multimedia University
Jalan Ayer Keroh Lama
75450 Bukit Beruang, Melaka, MALAYSIA.

ms.nuhu@yahoo.com

Faculty of Business
Multimedia University
Jalan Ayer Keroh Lama
75450 Bukit Beruang, Melaka, MALAYSIA.

zau@mmu.edu.my

Faculty of Business
Multimedia University
Jalan Ayer Keroh Lama
75450 Bukit Beruang, Melaka, MALAYSIA.

yzlim@mmu.edu.my

Abstract

This study aimed to examine the mitigating effects of ownership structure on real earnings management practices among Malaysian public-listed firms. Data was collected from firms listed on Bursa Malaysia’s main market, covering the years 2011 through 2021. The findings of Generalised Least Squares panel regression confirmed the significant negative effect of family ownership and foreign ownership on listed firms’ real earnings management, while managerial ownership and ownership concentration demonstrated insignificant effects. Practically, this study offers an effective framework for ownership structure and real earnings management practices to reduce executive managers’ opportunistic behaviour. The findings contribute to a broader understanding of these phenomena so that investors and other stakeholders can better analyse earnings reports and, therefore, make informed decisions, particularly pertaining to non-owner-controlled firms.

Keywords

Earnings management; family ownership; foreign ownership; managerial ownership; ownership concentration
https://doi.org/10.17576/pengurusan-2024-72-2

Citation

Nuhu, M. S., Ahmad, Z., & Ying Zhee, L. (2024). The Relationship between Ownership Structure and Real Earnings Management Practices: Evidence from Malaysian Public Companies. Jurnal Pengurusan, 72, –. https://doi.org/10.17576/pengurusan-2024-72-2

@article{nuhu2024relationship,
  title={The Relationship between Ownership Structure and Real Earnings Management Practices: Evidence from Malaysian Public Companies},
  author={Nuhu, Muhammad Shaheer and Ahmad, Zauwiyah and Ying Zhee, Lim},
  journal={Jurnal Pengurusan},
 

volume={72},
  number={},
  pages={—},
  year={2024},
  doi={https://doi.org/10.17576/pengurusan-2024-72-2},
  publisher={Penerbit UKM},
}

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72 (2024) –

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