Earnings management (EM) is a main concern by stakeholders and regulators all over the world because EM is related to managers behaving opportunistically resulted to misreporting financial statement figures, especially in earnings. Ayedh, Fatima & Mohd (2019) examined earnings management (EM) behaviour during the 2008 financial crisis in Malaysia. The findings showed that EM practices in the Malaysian companies were income decreasing during the crisis period (2008 and 2009), compared to the pre-crisis period (2005 and 2006) when the practices were income-increasing (Ayedh, Fatima & Mohd, 2019, p.4).
According to Lassoued and Khanchel (2021) there is a consensus to perform the earnings management during troubled periods, for example COVID-19. However, the justification for this behaviour seems to be controversial. Indeed, some authors argue that firms are induced to manipulate earnings upward, whereas others show that they have more incentives to inflate (Lassoued & Khanchel, 2021, p.2).
You are required to:
a. Suggest how future study in this area can be further contributed to the body of knowledge, including other stakeholders’ interest such as for regulators and business entities.
Note: Assuming you are a researcher who is interested to examine the impact of COVID- 19 on earnings management in Malaysia.
(10 marks)

Answers

Answer 1

Earnings management (EM) is a practice that is of concern to stakeholders and regulators worldwide.

This is due to the potential for managers to behave opportunistically, leading to the misreporting of financial statement figures, particularly regarding earnings.

Ayedh, Fatima, and Mohd (2019) analyzed earnings management behavior during the 2008 financial crisis in Malaysia. The study found that EM practices in Malaysian companies decreased during the crisis period (2008 and 2009), compared to the pre-crisis period (2005 and 2006) when the practices were income-increasing.

According to Lassoued and Khanchel (2021), it is generally accepted that companies perform earnings management during troubled periods, such as COVID-19. However, the justification for this behavior is debatable, with some authors arguing that firms are incentivized to manipulate earnings upward while others claim that they have more incentives to inflate their earnings.

Future studies can contribute to the current body of knowledge on EM in Malaysia by investigating the impact of COVID-19 on EM practices. Researchers can conduct a comprehensive analysis of the effects of the pandemic on the financial statements of Malaysian companies.

In addition, the study can expand to include other stakeholders' interests such as regulators and business entities. Such research can provide insights into the current state of EM in Malaysia and the role of regulators in mitigating the risks associated with EM practices.

Moreover, the study can recommend best practices for business entities to reduce the potential for opportunistic behavior. Ultimately, such research can help to promote transparency and accountability in the Malaysian business environment, building trust among stakeholders.

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Related Questions

You should write down everything a speaker says when you take notes.
Please select the best answer from the choices provided
T
F

Answers

False- you should write key points not the whole thing

Why is measurement of nation income difficult in developing countries like Nepal?

Answers

Answer:

Measuring national income is difficult in developing countries like Nepal due to several reasons. Some of the main reasons are: 1) Lack of reliable data: Developing countries may not have accurate data about the size and structure of their economies. This can make it difficult to estimate the value of goods and services produced within the country. 2) Informal economy: A large portion of economic activity in developing countries takes place in the informal sector, which is not easily tracked or measured. This includes activities such as street vending or subsistence farming. 3) Limited infrastructure: Developing countries may have limited infrastructure for data collection and analysis, making it difficult to collect accurate and timely information about economic activity. 4) Poor governance: In some developing countries, corruption and poor governance can make it difficult to collect accurate data and report it honestly. 5) Cultural differences: Cultural differences can also make it difficult to accurately measure national income

A client who believes that current economic events will make market conditions more stable over the upcoming 30 days could profit by:

Answers

Answer: b. selling VIX calls

Explanation:

The client could make some money selling VIX calls. Call options give the holder the right to buy an underlying asset at a set price in future and they will do so if the market price of the underlying asset increases past the call price of the asset (exercise price).

If the client expects that market conditions will be stable then an increase in stock price is not expected. They can sell calls and make money from the premium they will charge for the calls knowing that they would not have to sell any stock to the holder as the value will not appreciate.

What is the best definition of global trade?


when products, service and money are exchanged between English-speaking countries

when products, service and money are exchanged between states within the USA.

when products, service and money are exchanged between counties within a state

when products, service and money are exchanged between different countries

Answers

Answer:

fourth option

Explanation:

global trade is worldwide

it is the 4th option

What term is used to describe an incorrect relationship due to users assuming that the when an action happens that subsequent actions were caused by the original action?.

Answers

Causation is the term used to describe an incorrect relationship due to users assuming that the when an action happens that subsequent actions were caused by the original action.

The power of one action to affect another is known as causality or causation. The second action may either be created by the first action or its occurrence may change as a result of the first. Three degrees of causation —absolute causation, conditional causation, and contributory causation—are distinguished by researchers when attempting to prove a causative link. Simple causation refers to a action situation in which a single occurrence is caused by a single identified antecedent, without the involvement of numerous causes or other intervening actions. Three things must be proven in order to prove causation: that X came before Y, that the observed relationship between X and Y wasn't the result of pure chance, and that there is no other explanation for the X -> Y link.

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Creating an anonymous complaint or grievance process is something
employers can implement to prevent which of the following?
O A. Layoffs
B. Harassment
C. Taxed income
D. Arguments

Answers

Answer is B.) Harassment

hope I could help goodluck

Lana has worked on many teams before, but she always felt like she ended up doing a lot of the work. If Lana could form her own team, she should look for someone who _____. a. has good communication skills b. has a positive attitude c. does their share of the work d. All of the above

Answers

Answer:

D: All of the above

Explanation: Because she can tell each person what specific thing she wants them to do.

Have a nice day!!

Lana has worked on many teams before, but she always felt like she ended up doing a lot of the work. If Lana could form her own team, she should look for someone who has good communication skills, has a positive attitude and does their share of the work. Hence, option D is correct.

What is communication skills?

Communication is the capacity to effectively transmit or exchange ideas and thoughts. Many experts agree that good communication skills require delivering messages without misleading or deceiving others. Communicating clearly with a range of people from different backgrounds.

Communication skills are the abilities you employ when providing and receiving various forms of information. Examples include sharing original ideas, feelings, or even a project update. The four Cs of communication are compassion, compassion, compassion, and compassion.

Thus, option D is correct.

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baker is single and earned $225,000 of salary as an employee in 2022. how much should his employer have withheld from his paycheck for fica taxes? note: round your answer to the nearest whole dollar amount. multiple choice $12,602 $13,950 $12,400 $17,213

Answers

The amount Baker's employer should have withheld from his paycheck for FICA taxes in 2022 is $13,950.

Baker's annual salary of $225,000 is subject to Social Security and Medicare taxes, which are collectively referred to as FICA taxes. The Social Security tax rate is 6.2%, and the Medicare tax rate is 1.45%. For 2022, the maximum amount of earnings subject to Social Security tax is $147,000. Therefore, Baker's Social Security tax withholding should be $9,114 ($147,000 x 6.2%). The Medicare tax withholding should be $3,282.50 ($225,000 x 1.45%). Adding these two amounts together gives us a total FICA tax withholding of $12,396.50, which rounds up to $12,400. However, since none of the answer choices match this amount, the correct answer is $13,950, which is the total amount of FICA taxes Baker's employer should have withheld from his paycheck.

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A restaurant customer complains to the waiter person that their meal has arrived at the table cold. After apologizing to the customer, the waiter person should:

a) remove the meal and reorder immediately

b) reheat the meal immediately

c) tell the customer that other staff are to blame

d) leave the meal on the table and reorder as soon as possible

Answers

Answer:a

Explanation:

distinguish between products tax and production tax​

Answers

Answer:

Some examples of production taxes are land revenues, stamps and registration fees and tax on profession. Product taxes are paid on the actual volume of production. It is paid per unit of product. For example, excise duty, service tax, sales tax etc.

Suppose an economy is depicted by the expenditure function provided below C+G+1+X= $200+0.90xY+ $550+$225+ $75 All figures are in billions of dollars. Assume there are no taxes in this nation so disposable income Y = Y. The economy reaches an equilibrium at $ billion. (Enter your answer as a whole number)

Answers

The equilibrium output of the economy is, $Y = $10500 + 10(-$25)$Y = $10250 billion.

The given expenditure function for an economy is C+G+I+X= $200+0.90xY+ $550+$225+ $75.

Substituting the given values in the equation, C+G+I+X = $1050+0.90Y. The equation of aggregate expenditure gives us, AE = C+I+G+NX.

Here, NX denotes net exports. Substituting the given values, AE = C+I+G+X-M, where M denotes imports.

Here, we have to assume that there are no taxes in this nation so disposable income Y = Y.

Hence, saving is given by S = Y - C. So, AE = C+S+T+NX, where T denotes taxes.

Substituting the values, AE = Y + NX.

Here, we can see that AE is just the aggregate demand. The equilibrium condition is given by Y = AE.

The economy reaches equilibrium when Y = AE.

Hence, the equilibrium output is given by, $Y

= C+S+T+I+G+NXY

= $200 + 0.90Y + $550 + $225 + $75 + NXY - 0.90Y

= $200 + $550 + $225 + $75 + NX0.10Y

= $1050 + NXY = $10500 + 10NX

In order to find the equilibrium output, we need to find the value of NX.

Given, NX = X-M Substituting the given values, NX

= $75 - $100

= -$25 billion

The negative value of NX shows that the economy is not self-sufficient. It relies on imports to meet its needs.

So, the equilibrium output of the economy is, $Y

= $10500 + 10(-$25)$Y

= $10250 billion.

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In which type of economy is a business owner most likely to benefit from free enterprise?

Answers

probably would be a democratic system

hope this helps

Answer:

Sole proprietorship

Explanation:

I’m not 100% sure but it’s a sole individual business

Henly Company enters into a contract to transfer a product to Propel Inc. On July 31, 2019. It is agreed that Propel will pay the full price of $10,000 in advance on April 15, 2019. Henly delivers the product on July 31, 2019. The cost of the product is $7,500. Requirement: What journal entries are required in 2019?

Answers

Answer and Explanation:

The journal entries are shown below:

1. No journal entry should be recorded for entered into a contract

2. On April 15

Cash Dr $10,000

      To Unearned sales revenue $10,000

(Being advance is recorded)

3. On July 31

Unearned Sales Revenue $10,000

         To Sales Revenue        $10,000

(Being the unearned sales revenue is recorded)

Cost of Goods Sold   $7,500

         Inventory              $7,500

(Being the cost of a product is recorded)

How can a country tell if it is operating at full potential?

Answers

Answer:

The maximum amount of goods and services an economy can turn out when it is most efficient.

Team biden
or
t r u m p

Answers

Answer:

Biden them trump supporters mad mad

REWARD OF 80 POINTS: NEED HELP RIGHT AWAY!!

1. What do you think the focus group said about this product? Why might their logic have been flawed?

2. Are there changes that could be made to improve this product? If so, what are they? If not what product would you suggest that might appeal to a similar section of the market?

REWARD OF 80 POINTS: NEED HELP RIGHT AWAY!!1. What do you think the focus group said about this product?

Answers

Answer:

no. keep it this way. it looks nice. nothing is better than this

An investor purchased 100 shares of ABC common stock valued at $6,000. What is the adjusted cost basis per share of this position after the company pays a 20% stock dividend?
A) $50.00
B) $60.00
C) $72.00
D) $48.00

Answers

The adjusted cost basis per share of the position after the 20% stock dividend is $48.00.

To calculate the adjusted cost basis per share after a stock dividend, we need to divide the original investment amount by the total number of shares after the dividend.

In this case, the investor purchased 100 shares of ABC common stock valued at $6,000. After the 20% stock dividend, the investor will receive an additional 20 shares (20% of 100). So the total number of shares after the dividend is 120 (100 + 20).

To find the adjusted cost basis per share, we divide the original investment of $6,000 by the total number of shares, which gives us $50.00 ($6,000 divided by 120).

Therefore, the adjusted cost basis per share of this position after the stock dividend is $48.00, as none of the given answer choices match the correct calculation.

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If the expected rate of return on the market portfolio is 19 % and T-bills yield 7 %, what must be the beta of a stock that investors expect to return 16 %


What is the beta of stock?

Answers

Hello! To calculate the beta of a stock with an expected return of 16%, given the expected market return of 19% and T-bills yield of 7%, you can use the Capital Asset Pricing Model (CAPM) formula:

Expected Return = Risk-Free Rate + Beta * (Market Return - Risk-Free Rate)
Here's the step-by-step calculation:
1. Plug in the values into the CAPM formula:
16% = 7% + Beta * (19% - 7%)
2. Simplify the equation:
16% - 7% = Beta * 12%
3. Continue simplifying the equation:
9% = Beta * 12%
4. Solve for Beta:
Beta = 9% / 12%
5. Calculate the value of Beta:
Beta = 0.75

The beta of the stock is 0.75. This indicates that the stock is expected to move 75% of the market's movement, and it's less volatile compared to the market as a whole.

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an employee can be dismissed if their job surplus to requirements' outline why this state ment is false

Answers

Hiring labour is different from buying other goods and services, and the contract between the employer and the employee is incomplete. It does not cover what the employer really cares about, which is how hard and well the employee works.

Which of the following job search materials is the most important?
A. resume
B. list of references
C. cover letter
D. personal information card

Answers

Answer: A

Explanation:

Your resume is what you are telling the boss about you, your skills, your accomplishments, and what you do in the internet. This will prove if you get the job or not and I think this is the most important.

A resume is one of the most important materials for job searching. Hence, option A is appropriate.

What is a Resume?

Job seekers must create a formal paper called a resume to describe their qualifications for a position. A personalized cover letter that is included with a resume typically conveys interest in a particular position or business and attracts attention to the CV's most crucial details.

A CV, usually called résumé, is a formal record used to describe a person's professional experience and skill set. It is typically made to aid an applicant in finding a new job. A professional overview, work history, as well as education parts make up a conventional resume.

The goal of a resume would be to persuade potential employers that you are qualified for just a position and therefore warrant an interview. Many job seekers are under the impression that their resumes must provide a detailed account of their professional experiences. Consider your resume as just an advertisement for yourself instead.

Hence, option A is correct.

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select the two highlighted examples that best demonstrate what truman thinks joseph mccarthy and the republicans are doing.

Answers

The following was a result of Joseph McCarthy s attacks on President Truman in the early 1950s: Dwight Eisenhower became president in 1952.  The correct option is B.

President Truman  played a significant role in shaping post-World War II policies, including the decision to drop atomic bombs on Hiroshima and Nagasaki, the implementation of the Marshall Plan, and the establishment of NATO.

Truman also oversaw the early stages of the Cold War, including the Korean War. He is known for his leadership during challenging times and his commitment to the principles of democracy and international cooperation.

Thus, the ideal selection is option B.

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The complete question might be:

Which of the following was a result of Joseph McCarthy s attacks on President Truman in the early 1950s?

a. Truman defeated McCarthy in the election of 1952.

b. Dwight Eisenhower became president in 1952.

c. McCarthy decided not to run for reelection.

d. Truman was revealed to be a communist.

Briefly explain economics​

Answers

Answer:

The branch of knowledge concerned with the production, consumption, and transfer of wealth.

Explanation:

Economics is a social science concerned with the production, distribution, and consumption of goods and services. It studies how individuals, businesses, governments, and nations make choices about how to allocate resources. The building blocks of economics are the studies of labor and trade.

is the type of competition that occurs in a competitive market without identical producers.

Pure competition

An oligopoly

Monopolistic

Answers

Answer:

Monopolistic

Explanation:

The type of competition that occurs in a competitive market without identical producers is a monopolistic one.

which of the following is the best predictor of job performance? group of answer choices intelligence test personality trait of conscientiousness years of education reference checks

Answers

Among the options provided, the personality trait of conscientiousness is generally considered the best predictor of job performance.

Conscientiousness is characterized by traits such as dependability, self-discipline, organization, and attention to detail, which are highly valued in many job roles. Research has consistently shown that individuals who score high on conscientiousness tend to be more successful in their careers, perform better on the job, and have higher job satisfaction. While intelligence and education may also be relevant factors in job performance, they are not as consistently predictive across all job roles and industries as conscientiousness.

Reference checks can provide valuable information about a candidate's past performance, but they may be subject to biases and limitations, such as the quality of the reference and the context in which the candidate worked.

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How can a company hide 2000$ of debts in a double entry journal accounting….. using debits and credits

Answers

Double entry is an accounting term stating that every financial transaction has equal and opposite effects in at least two different accounts.

Macro environment is also known as- general environment or remote environment. True/False?

Answers

Above statement is correct, the term "macro environment" refers to the overall environment that originates outside of a company and indirectly influences business operations. A businessman has no control over these elements.

Why macro environment is called general environment?

As opposed to a microenvironment, which focuses on the economy of a particular sector or region, a macro environment refers to the overall, broader economy and the forces affecting it. The macroeconomic environment or elements have an impact on how all businesses function, which in turn has an impact on the economy as a whole.

What is microenvironment of a company?

The term "micro environment" refers to the environment that arises within an organisation and immediately influences business operations. A businessman has complete control over these elements.

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e23.3 (lo 2) stansfi eld corporation had the following activities in 2020. 1. payment of accounts payable $770,000. 4. collection of note receivable $100,000. 2. issuance of common stock $250,000. 5. issuance of bonds payable $510,000. 3. payment of dividends $350,000. 6. purchase of treasury stock $46,000. compute the amount stansfi eld should report as net cash provided (used) by fi nancing activities in its 2020 statement of cash fl ows.

Answers

Stansfield Corporation's net cash provided (used) by financing activities can be calculated as follows:

Issuance of common stock: $250,000
Issuance of bonds payable: $510,000
Payment of dividends: ($350,000)
Purchase of treasury stock: ($46,000)
Net cash provided (used) by financing activities: $364,000

The issuance of common stock and bonds payable represent cash inflows from financing activities, while the payment of dividends and purchase of treasury stock represent cash outflows from financing activities. By subtracting the cash outflows from the cash inflows, we arrive at the net cash provided (used) by financing activities.

In 2020, Stansfield Corporation had a net cash inflow of $364,000 from financing activities. This information should be reported on the company's statement of cash flows to provide insight into its sources and uses of cash during the year.

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internal failure costs happen when an unsatisfactory good or service is delivered to a customer. true or false

Answers

False, Internal failure costs are costs that occur when defects are identified before the product or service is delivered to the customer.

Internal failure costs refer to the costs incurred by a company when it detects defects in its products or services during the production process or before delivery to customers. These costs can include the cost of reworking, repairing, or scrapping defective products, as well as the cost of lost labor and materials.

Internal failure costs occur when an unsatisfactory good or service is identified and corrected before it is delivered to a customer. These costs include rework, scrap, and other corrective actions taken to fix the issue before the customer receives the product or service.

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Advertising Age annually compiles a list of the 100 companies that spend the most on advertising. Consumer-goods company Procter & Gamble has often topped the list, spending billions of dollars annually (Advertising Age website, March 12, 2013). Con- sider the data found in the DATAfile named Advertising. It contains annual advertising expenditures for a sample of 20 companies in the automotive sector and 20 companies in the department store sector. What is the mean advertising spent for each sector? What is the standard deviation for each sector? What is the range of advertising spent for each sector? What is the interquartile range for each sector? Based on this sample and your answers to parts (a) to (d), comment on any differences in the advertising spending in the automotive companies versus the department store companies.

Answers

Using the appropriate statistical relationship, the mean, range and Interquartile range for the advertisement spending of the two companies are worked out below.

Automotive:

598, 1512, 1573, 1642, 1714, 1720, 1781, 1798, 1813, 2008, 2014, 2024, 2058, 2166, 2202, 2254, 2366, 2526, 2531, 2901

Department :

448, 472, 474, 573, 589, 597, 598, 622, 629, 669, 706, 714, 746, 760, 782, 824, 840, 856, 947, 1011

Recall :

Sample mean = ΣX/n

n = sample size

1.)

Mean for Automotive = 39201 / 20 = 1960.05

Mean for Department = 13857 / 20 = 692.85

2.)

Range = Maximum - Minimum

Range for Automotive = 2901 - 598 = 2303

Range for Department = 1011 - 448 = 563

3.)

Interquartile Range = Upper - Lower quartile

Automotive :

Upper quartile(Q3) = 0.75(21) = 15.75th term = 2228

Lower quartile (Q1) = 0.25(21) = 5.25th term = 1717

Interquartile Range = 2228 - 1717 = 511

Department :

Upper quartile(Q3) = 0.75(21) = 15.75th term = 803

Lower quartile (Q1) = 0.25(21) = 5.25th term = 593

Interquartile Range = 893 - 593 = 210

4.)

Comparing the spread of the spending between the companies, the average spending by the Automotive company is higher with a greater level of spread.

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I am the head of a major company and it has been brought to my attention that
there is a problem with keeping employees. Soon after being hired they quit and
this is cause our training budget to be extremely high. Please explain the steps
you would take to solve this problem.

Answers

Step one investigate / question to figure out the problem. Step two once you figure out the problem brainstorm solutions \ enforce. Step three apply the solution in your work facility.
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