The Effect of Earnings Management on Bank Efficiency

Mohd Fahmee Ab-Hamid and Rozilee Asid and Nor Fatimah Che Sulaiman and Wan Farisan Wan Sulaiman and Elya Nabila Abdul Bahri (2018) The Effect of Earnings Management on Bank Efficiency. Asian Journal of Accounting and Governance, 10. pp. 1-12. ISSN 2180-3838

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Abstract

A study on the effects of earnings management practices on bank cost efficiency, using banking data in five ASEAN countries, was conducted in 1989–2015. The Stochastic Frontier Analysis technique employed to gauge cost efficiency revealed that each country has different efficiency level. With panel data analysis, we further discovered that increase in earnings management practices reduces bank's efficiency significantly. It is suggested that banking supervisors and managers should formulate strategies that focus on cost efficiency–related initiatives and regulate earnings management practices. Such strategies could potentially facilitate the economic integration of ASEAN countries.

Item Type: Article
Uncontrolled Keywords: Bank, Cost efficiency, SFA, Earnings management, ASEAN
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HD Industries. Land use. Labor > HD58.7-58.95 Organizational behavior, change and effectiveness. Corporate culture
Divisions: FACULTY > Faculty of Business, Economics and Accounting
Depositing User: SITI AZIZAH BINTI IDRIS -
Date Deposited: 11 Mar 2020 08:08
Last Modified: 19 Apr 2020 15:07
URI: http://eprints.ums.edu.my/id/eprint/25194

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