Pertukaran Ketua Pegawai Eksekutif/Pengarah Urusan dan Pengurusan Perolehan
Chief Executive Officer/Managing Director Turnover and Earnings Management

Sektor Audit Prestasi
Jabatan Audit Negara Malaysia
No. 15, Aras 1-5, Persiaran Perdana, Presint 2
Pusat Pentadbiran Kerajaan Persekutuan
62518 Putrajaya, MALAYSIA.

sh_zarina@audit.gov.my

Pusat Keutuhan Tadbir Urus dan Akauntabiliti
Fakulti Ekonomi dan Pengurusan
Universiti Kebangsaan Malaysia
43600 UKM Bangi, Selangor, MALAYSIA.

msabri@ukm.edu.my

Pusat Keutuhan Tadbir Urus dan Akauntabiliti
Fakulti Ekonomi dan Pengurusan
Universiti Kebangsaan Malaysia
43600 UKM Bangi, Selangor, MALAYSIA.

romlah@ukm.edu.my

Abstract

Top management (Chief Executive Officer/Managing Director) is among the most influential individuals in determining the performance and continuity of the company’s operations. Therefore, the CEO/MD turnover is considered as an important event that may affects the company. Prior studies examined the relationship between the CEO/MD turnover with (i) the share price; (ii) the company’s financial performance; and (iii) earnings management. However, studies in Malaysia were focusing the effect of turnover on company’s financial performance and share price. Accordingly, this study reduces the gap by examining the association between CEO/MD turnover and earnings management. The sample of the study comprises 98 public listed companies which experienced the CEO/MD turnover between 2009 and 2014. Findings from this study indicate that the incoming CEO/MD has a tendency to manage earnings negatively to reduce earnings during the turnover year. Subsequently they manage earnings upward a year after the turnover. These findings are in line with past studies. However, finding also indicates that the new CEO/MD recruited internally is more likely to manage earnings upward compared to CEO/MD recruited from outside the organizations. The findings of this study may useful in the strategic decision-making involving the corporate management of public listed companies, particularly when the decision of the CEO/MD turnover is considered. It is relevant for investors and prospective investors in helping them make investment decisions in companies that have or will experience CEO/MD turnover.

Keywords

Chief executice officer; earnings management; managing director; turnover
https://doi.org/10.17576/pengurusan-2018-54-10

Citation

Syed Ahmad, S. Z., Hassan, M. S., & Jaffar, R. (2018). Pertukaran Ketua Pegawai Eksekutif/Pengarah Urusan dan Pengurusan Perolehan. Jurnal Pengurusan, 54, 115–130. https://doi.org/10.17576/pengurusan-2018-54-10

@article{syedahmad2018pertukaran,
  title={Pertukaran Ketua Pegawai Eksekutif/Pengarah Urusan dan Pengurusan Perolehan},
  author={Syed Ahmad, Sharifah Zarina and Hassan, Mohamat Sabri and Jaffar, Romlah},
  journal={Jurnal Pengurusan},
 

volume={54},
  number={},
  pages={115—130},
  year={2018},
  doi={https://doi.org/10.17576/pengurusan-2018-54-10},
  publisher={Penerbit UKM},
}

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54 (2018) 115 – 130

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