IFRS Mandatory disclosures in Malaysia: the influence of family control and the value (ir)relevance of compliance levels

Abdullah, M., Evans, L., Fraser, I. and Tsalavoutas, I. (2015) IFRS Mandatory disclosures in Malaysia: the influence of family control and the value (ir)relevance of compliance levels. Accounting Forum, 39(4), pp. 328-348. (doi:10.1016/j.accfor.2015.05.003)

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Abstract

We examine the effect of family control on IFRS mandatory disclosure levels, and the valuation implications of these disclosure levels, for Malaysian companies. We find that family control is related negatively to disclosure and that compliance levels are not value relevant. These findings suggest that agency theory predictions and theories linking common law legal systems to high quality financial reporting require refining in certain national contexts. Where Type 2 agency problems dominate, institutional arrangements intended to enhance financial reporting quality aimed at mitigating Type 1 problems in developed markets may have limited effect in less developed jurisdictions.

Item Type:Articles
Status:Published
Refereed:Yes
Glasgow Author(s) Enlighten ID:Tsalavoutas, Dr Ioannis
Authors: Abdullah, M., Evans, L., Fraser, I., and Tsalavoutas, I.
College/School:College of Social Sciences > Adam Smith Business School > Accounting and Finance
Journal Name:Accounting Forum
Publisher:Elsevier Ltd
ISSN:1467-6303
ISSN (Online):0155-9982
Copyright Holders:Copyright © 2015 Elsevier Ltd.
First Published:First published in Accounting Forum 39(4):328-348
Publisher Policy:Reproduced in accordance with the copyright policy of the publisher.

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