Pertukaran ketua pegawai eksekutif/pengarah urusan dan pengurusan perolehan

Translated title of the contribution: Chief executive officer/managing director turnover and earnings management

Sharifah Zarina Syed Ahmad, Mohamat Sabri Hassan, Romlah Jaffar

Research output: Contribution to journalArticle

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 prices. Accordingly, this study reduces the gaps 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. Subsequentlythey 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.

Original languageMalay
JournalJurnal Pengurusan
Volume54
Publication statusPublished - 1 Jan 2018

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Turnover
Earnings management
Chief executive officer
Listed companies
Financial performance
Share prices
Investors
Top management
Strategic decision making
Continuity
Investment decision
Corporate management
Malaysia

ASJC Scopus subject areas

  • Business and International Management
  • Accounting
  • Business, Management and Accounting (miscellaneous)

Cite this

Pertukaran ketua pegawai eksekutif/pengarah urusan dan pengurusan perolehan. / Ahmad, Sharifah Zarina Syed; Hassan, Mohamat Sabri; Jaffar, Romlah.

In: Jurnal Pengurusan, Vol. 54, 01.01.2018.

Research output: Contribution to journalArticle

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