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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)
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    References listed on IDEAS

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    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)

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    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

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