Anti-corruption policy and earnings management: do women in monitoring roles matter?
| Autor: | Dewi Mustika Ratu, Dian Kartika Rahajeng |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2024 |
| Předmět: | |
| Zdroj: | AJAR (Asian Journal of Accounting Research), Vol 9, Iss 4, Pp 340-357 (2024) |
| Druh dokumentu: | article |
| ISSN: | 2443-4175 2459-9700 |
| DOI: | 10.1108/AJAR-09-2023-0327/full/pdf |
| Popis: | Purpose – The inadequate enforcement of anti-corruption policies in the private sector in Association of Southeast Asian Nations (ASEAN) countries is the motivation for this study to investigate how a company’s anti-corruption disclosure (ACD) affects earnings management. Moreover, the underrepresentation of women in supervisory roles makes this aspect of particular interest. Hence, this study highlights the question of whether their participation in audit committees can impact the organization's policies. Design/methodology/approach – This research employs archival methods to examine 30 of the largest non-financial companies from each of the ASEAN-5 countries (Indonesia, Malaysia, Singapore, Thailand and the Philippines) from 2016 to 2018. Lastly, the authors also utilize a robustness test. Findings – As expected, the results indicate that the low willingness to disclose anti-corruption activities encourages earnings management practices. This relationship is significantly more potent in firms with fewer women on their audit committees. The findings remain robust after assessing alternative measurements. Practical implications – The findings of this study imply that a company’s anti-corruption policies and the role of women in supervisory activity influence rent-seeking behavior. Thus, investors should consider elements that promote transparency in companies. Additionally, regulators must evaluate regulations to promote gender diversity and eradicate corruption by establishing exact policies, providing whistleblowing protection and simplifying indicators for effective disclosure. Originality/value – The consequences of the anti-corruption policy in the ASEAN-5 countries are relatively under-researched and still focus on a single country. Furthermore, while examining the connection between ACD and earnings management, this study also considered how addressing the supervisory factor is urgent in terms of corporate transparency. |
| Databáze: | Directory of Open Access Journals |
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