IDEAS home Printed from https://ideas.repec.org/p/gtr/gatrjs/afr201.html
   My bibliography  Save this paper

Enhancing Financial Reporting Quality through Corporate Ethics Commitment

Author

Listed:
  • Noorul Azwin Md Nasir

    (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Malaysia Author-2-Name: Hafiza Aishah Hashim Author-2-Workplace-Name: Faculty of Business Economics and Social Development, Universiti Malaysia Terengganu, Malaysia Author-3-Name: Noorshella Che Nawi Author-3-Workplace-Name: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Malaysia Author-4-Name: "Mohd Nor Hakimin Yusof" Author-4-Workplace-Name: "Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Malaysia " Author-5-Name: Nur Athirah Mohd Aluwi Author-5-Workplace-Name: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Malaysia Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)

Abstract

"Objective - A rising number of cases involving ethical misconduct within firms have of late received considerable attention in Malaysia. Despite the country's declaring having a strong corporate governance policy, strengthened through the Code of Ethics for Company Directors and Malaysia Code of Corporate Governance, unethical practices, and lack of integrity within firms remain an issue. This paper aims to review the current implementation of corporate ethical conducts among corporate governance practitioners as well as factors that influence corporate ethics commitment in a firm. Methodology/Technique - This paper is developed from extensive readings of previous literature on corporate governance practices and their effect on the quality of financial reports. Findings - This paper discloses collective approaches of corporate ethics practiced in Malaysian firms and how the implementation has enhanced the firms' overall financial reporting quality. It demonstrates current issues and the importance of corporate ethics commitment to enhance financial reporting quality. Firms that emphasize ethical commitments, reduce the risk of financial statement fraud and firms will naturally gain trust from their stakeholders. Novelty - This paper stresses the importance of sound ethical conduct above other factors that influence the financial reporting quality of firms in Malaysia. This paper is the result of extensive research on corporate ethics commitment and financial reporting quality. Type of Paper - Review."

Suggested Citation

  • Noorul Azwin Md Nasir, 2021. "Enhancing Financial Reporting Quality through Corporate Ethics Commitment," GATR Journals afr201, Global Academy of Training and Research (GATR) Enterprise.
  • Handle: RePEc:gtr:gatrjs:afr201
    DOI: https://doi.org/10.35609/afr.2021.6.2(2)
    as

    Download full text from publisher

    File URL: http://gatrenterprise.com/GATRJournals/AFR/pdf_files/AFR-Vol-6(2)/2.%20Noorul%20Azwin%20Md%20Nasir.pdf
    Download Restriction: http://gatrenterprise.com/GATRJournals/online_submission.html

    File URL: https://libkey.io/https://doi.org/10.35609/afr.2021.6.2(2)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Kuo, Jing-Ming & Ning, Lutao & Song, Xiaoqi, 2014. "The Real and Accrual-based Earnings Management Behaviors: Evidence from the Split Share Structure Reform in China," The International Journal of Accounting, Elsevier, vol. 49(1), pages 101-136.
    2. Patricia M. Dechow & Richard G. Sloan & Amy P. Sweeney, 1996. "Causes and Consequences of Earnings Manipulation: An Analysis of Firms Subject to Enforcement Actions by the SEC," Contemporary Accounting Research, John Wiley & Sons, vol. 13(1), pages 1-36, March.
    3. Philmore Alleyne, 2016. "The influence of organisational commitment and corporate ethical values on non-public accountants’ whistle-blowing intentions in Barbados," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 17(2), pages 190-210, May.
    4. Iskandar Muda & Weldi Maulana & Hasan Sakti Siregar & Naleni Indra, 2018. "The Analysis of Effects of Good Corporate Governance on Earnings Management in Indonesia with Panel Data Approach," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 22(2), pages 599-625, Spring.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Xiangyu Chen & Muhammad Safdar Sial & Dang Khoa Tran & Waseem Alhaddad & Jinsoo Hwang & Phung Anh Thu, 2020. "Are Socially Responsible Companies Really Ethical? The Moderating Role of State-Owned Enterprises: Evidence from China," Sustainability, MDPI, vol. 12(7), pages 1-19, April.
    2. Siregar, Budi Gautama & Lubis, Ade Fatma & Maksum, Azhar & Fachrudin, Fachrudin, 2018. "Analysis of Corporate Social Responsibility, Default Risk and Conservatism Effect to Earning Management with Good Corporate Governance as Moderating Variable in Manufacturing Company Whose Shares Inco," MPRA Paper 87760, University Library of Munich, Germany, revised Mar 2018.
    3. Ali Meftah Gerged & Khaldoon Albitar & Lara Al‐Haddad, 2023. "Corporate environmental disclosure and earnings management—The moderating role of corporate governance structures," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 2789-2810, July.
    4. Awais Amin, Qazi & Cumming, Douglas, 2023. "Regulatory reforms, board independence and earnings quality," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 88(C).
    5. Rongli Yuan & Yadong Han & Zhanliao Chen, 2023. "Multiple Large Shareholders and Financial Reporting Quality: Evidence from China," Abacus, Accounting Foundation, University of Sydney, vol. 59(1), pages 197-229, March.
    6. Anup Banerjee & Mattias Nordqvist & Karin Hellerstedt, 2020. "The role of the board chair—A literature review and suggestions for future research," Corporate Governance: An International Review, Wiley Blackwell, vol. 28(6), pages 372-405, November.
    7. Li, Chunyu & Lou, Chenxin & Luo, Dan & Xing, Kai, 2021. "Chinese corporate distress prediction using LASSO: The role of earnings management," International Review of Financial Analysis, Elsevier, vol. 76(C).
    8. Basil Al‐Najjar, 2012. "The determinants of board meetings: evidence from categorical analysis," Journal of Applied Accounting Research, Emerald Group Publishing Limited, vol. 13(2), pages 178-190, September.
    9. Ararat, Melsa & Yurtoglu, B. Burcin, 2021. "Female directors, board committees, and firm performance: Time-series evidence from Turkey," Emerging Markets Review, Elsevier, vol. 48(C).
    10. Carol Liu, M.H. & Zhuang, Zili, 2011. "Management earnings forecasts and the quality of analysts’ forecasts: The moderating effect of audit committees," Journal of Contemporary Accounting and Economics, Elsevier, vol. 7(1), pages 31-45.
    11. Curtis Nicholls, 2016. "The impact of SEC investigations and accounting and auditing enforcement releases on firms’ cost of equity capital," Review of Quantitative Finance and Accounting, Springer, vol. 47(1), pages 57-82, July.
    12. Zvi Singer & Jing Zhang, 2022. "Do companies try to conceal financial misstatements through auditor shopping?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 49(1-2), pages 140-180, January.
    13. Samuel Jebaraj Benjamin, 2019. "The Effect of Financial Constraints on Audit Fees," Capital Markets Review, Malaysian Finance Association, vol. 27(2), pages 59-87.
    14. Moon Kyung Cho & Minjung Kang, 2024. "Executives Implicated in Financial Reporting Fraud and Firms’ Investment Decisions," Sustainability, MDPI, vol. 16(11), pages 1-26, June.
    15. Bhuiyan, Md. Borhan Uddin & Rahman, Asheq & Sultana, Nigar, 2020. "Female tainted directors, financial reporting quality and audit fees," Journal of Contemporary Accounting and Economics, Elsevier, vol. 16(2).
    16. Badolato, Patrick G. & Donelson, Dain C. & Ege, Matthew, 2014. "Audit committee financial expertise and earnings management: The role of status," Journal of Accounting and Economics, Elsevier, vol. 58(2), pages 208-230.
    17. James Routledge & David Morrison, 2012. "Insolvency administration as a strategic response to financial distress," Australian Journal of Management, Australian School of Business, vol. 37(3), pages 441-459, December.
    18. Rahman, Dewan & Malik, Ihtisham & Ali, Searat & Iqbal, Jamshed, 2021. "Do co-opted boards increase insider profitability?," Journal of Contemporary Accounting and Economics, Elsevier, vol. 17(3).
    19. Elizabeth Almer & Audrey Gramling & Steven Kaplan, 2008. "Impact of Post-restatement Actions Taken by a Firm on Non-professional Investors’ Credibility Perceptions," Journal of Business Ethics, Springer, vol. 80(1), pages 61-76, June.
    20. Qasim Ahmad Alawaqleh & Nashat Ali Almasria, 2021. "The Impact of Audit Committee Performance and Composition on Financial Reporting Quality in Jordan," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 12(3), pages 55-69, May.

    More about this item

    Keywords

    Corporate Ethics; Corporate Governance; Financial Reporting Quality;
    All these keywords.

    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gtr:gatrjs:afr201. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Prof. Dr. Abd Rahim Mohamad (email available below). General contact details of provider: http://gatrenterprise.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.