The quality of Malaysian interim financial reports and the impact of corporate governance on the quality

Binti Sanayan, Zarina 2013. The quality of Malaysian interim financial reports and the impact of corporate governance on the quality. PhD Thesis, Cardiff University. Item availability restricted.

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Abstract

This thesis examines the quality of Malaysian interim financial reports (interims) and the impact of corporate governance on the quality. The quality of interims is proxied by timeliness; compliance with the FRS 134, Interim Financial Reporting; compliance with the Bursa Malaysia Listing Requirements (BMLR); and comparability of profit and loss items when they were originally issued and placed in the next year’s corresponding quarter and comparison against the annual reports. Two methods are used to assess the quality of interims namely dichotomous and continuous. The first method provides one score for each proxy if it is in compliance and zero score otherwise and the latter method use the actual values. This thesis has found that the quality of interims is remarkably high for each proxy if a dichotomous method is used and it is moderate for continuous method. The lower quality is due to timeliness and comparability, because Malaysian companies are inclined to publish interims towards the end of the allowable period and most of the interims’is remarkably high for each proxy if a dichotomous method is used and it is moderate for continuous method. The lower quality is due to timeliness and comparability, because Malaysian companies are inclined to publish interims towards the end of the allowable period and most of the interims’ profit and loss items are not comparable. Consequently, compliance with the FRS 134 contributes the most to the quality of interims, while comparability contributes the least. Corporate governance is proxied by the frequency of directors’ meetings, independence, financial literacy, corporate governance expertise, and the ethnicity of directors. This thesis has found that all corporate governance variables are associated with the quality of interims except independence and corporate governance expertise. Despite these associations, multivariate regression reveals that the impact of corporate governance on the quality of interims is very low. These findings have implications for several users such as Malaysian regulatory bodies to ensure that PLC complied with the interim reporting standards; policymakers to ensure there is no misapplication of provision of accounting standards; protect shareholders to appoint appropriate composition of directors; and academicians for future research.

Item Type:	Thesis (PhD)
Status:	Unpublished
Schools:	Business (Including Economics)
Subjects:	D History General and Old World > DS Asia H Social Sciences > HG Finance
Date of First Compliant Deposit:	30 March 2016
Last Modified:	19 Mar 2016 23:17
URI:	https://orca.cardiff.ac.uk/id/eprint/45613

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