THE ROLE OF FEMALE DIRECTORS AND CORPORATE ETHICAL COMMITMENT OF FIRMS’ ON EARNING MANAGEMENT LEVEL IN MALAYSIA: A PRELIMINARY STUDY
DOI:
https://doi.org/10.33102/3rpvj978Keywords:
Female directors, corporate ethical commitment, earnings management, corporate governance, MalaysiaAbstract
The study is focuses on firms’ earning management level which could impair financial information quality and undermine the various stakeholder’s decision making. The aim of this research is to investigate the role of female directors and firms’ corporate ethical commitments disclosure hereafter refer to (CEC) towards the practice of earning management level. The study serves as a preliminary study by using random sample selection of nine public listed firms in Malaysia in the year of 2023. Female director role is measured through percentage of female directors (%FD). As for the firms’ corporate ethical commitment level, the study used Ethical Commitment Assessment Index (ECAI) to measure the firms’ CEC level used by past study established index. The findings offer early evidence on the role of female directors and corporate ethical commitment in influencing earnings management behavior, with implications for corporate governance policies and ethical reporting practices in Malaysia.
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