Template-Type: ReDIF-Article 1.0
Author-Name: Redhwan Ahmed al-Dhamari
Author-Workplace-Name: College of Business, Universiti Utara Malaysia, 06010 UUM Sintok, Kedah
Author-Email: redwan_damari@yahoo.com
Author-Name: Ku Nor Izah Ku Ismail 
Author-Workplace-Name: College of Business, Universiti Utara Malaysia, 06010 UUM Sintok, Kedah
Title: Governance Structure, Ownership Structure and Earnings Predictability: Malaysian Evidence
Abstract: This study is distinct from prior research focusing mainly on the relationship of corporate governance mechanisms to earnings management or earnings informativeness because  it examines the associations between governance structure, ownership structure, and earnings predictability. Using a sample of 330 firms for the period of 2008 through 2009, the findings reveal that the predictive ability of earnings is high when firms have small boards, an independent chair person, and high shareholding by institutions. However, in contradiction to our expectation is the significant but negative effect of board independence on earnings predictability. The results also demonstrate that investors do not perceive independent audit committees, more active audit committees, competent audit committees, and a high shareholding of management as good indicators of earnings numbers with a high predictive value. 
Classification-JEL:
Keywords: governance structure, ownership structure, earnings predictability, 2007 requirements, Bursa Malaysia
Journal: Asian Academy of Management Journal of Accounting and Finance
Pages: 1-23
Volume: 9
Issue: 1
Year: 2013
File-URL:http://web.usm.my/journal/aamjaf/vol%209-1-2013/Art%201%20%281-23%29.pdf
File-Format: Application/pdf
Handle: RePEc:usm:journl:aamjaf00901_1-23