Family Ownership and Financial Reporting Quality: The Influence of Financial and Law Expertise of Audit Committee
Politeknik Kota Kinabalu
88450 Kota Kinabalu
Sabah
MALAYSIA
Fakulti Ekonomi dan Pengurusan
Universiti Kebangsaan Malaysia
43600 UKM Bangi Selangor
MALAYSIA
Abstract
Pemilikan keluarga merupakan salah satu ciri dominan yang mempengaruhi kualiti pelaporan kewangan firma di Malaysia. Kajian lepas di negara Barat, khususnya Amerika Syarikat mendapati firma milikan keluarga mempunyai kualiti pelaporan kewangan yang lebih baik berbanding dengan kualiti pelaporan firma bukan milikan keluarga. Namun dapatan kajian di negara Asia, khususnya Malaysia menunjukkan dapatan yang bercampur-campur. Kajian ini mengkaji pengaruh kepakaran kewangan dan perundangan ahli jawatankuasa audit ke atas hubungan pemilikan keluarga dengan kualiti pelaporan kewangan. Sebanyak 242 firma tersenarai di Bursa Malaysia pada tahun 2013 telah dipilih sebagai sampel kajian dengan menggunakan kaedah pensampelan rawak berstrata. Kualiti pelaporan kewangan diukur menggunakan akruan boleh pilih berdasarkan Model Jones Diubahsuai. Hasil analisis regresi menunjukkan terdapat hubungan tidak linear antara pemilikan keluarga dan kualiti pelaporan kewangan. Dapatan kajian ini menyokong teori agensi yang menyatakan kepakaran kewangan ahli jawatankuasa audit merupakan mekanisme yang berkesan dalam meningkatkan kualiti pelaporan kewangan apabila tahap pemilikan ekuiti keluarga adalah rendah. Namun, kualiti pelaporan kewangan didapati semakin menurun apabila pemilikan ekuiti keluarga adalah pada tahap yang tinggi. Pada tahap pemilikan keluarga tinggi, kepakaran kewangan ahli jawatankuasa audit bukan lagi faktor yang efektif untuk mengekang aktiviti pengurusan perolehan. Kepakaran perundangan pula didapati tidak menunjukkan sebarang pengaruh yang signifikan ke atas hubungan pemilikan keluarga dan kualiti pelaporan kewangan firma. Dapatan kajian ini memberi implikasi tentang keberkesanan jawatan kuasa audit dalam mengurangkan konflik agensi antara pemegang saham kawalan dengan pemegang saham bukan kawalan, terutama dalam persekitaran pemilikan keluarga yang dominan. Oleh itu, untuk meningkatkan kualiti pelaporan kewangan di firma Malaysia, maka kepakaran jawatankuasa audit merupakan antara ciri tadbir urus yang perlu diambil perhatian. Pihak penggubal dasar dan polisi di Negara ini perlu menetapkan syarat pelantikan ahli jawatankuasa audit yang boleh memberi kesan yang positif kepada kualiti pelaporan kewangan firma di Malaysia.
Family ownership is one of dominant characteristics that influences quality of financial reporting of Malaysian firms. Past studies in the western world, specifically in the United States, have shown that the quality of financial reporting of family own firms is better than the non-family own firm. However, the findings in Asian countries, specifically in Malaysia are mixed. This study investigates the influence of financial expertise and legal expertise of audit committee on the relationship between family ownership and financial reporting quality. A sample of 242 public listed companies on Bursa Malaysia for year 2013 were selected based on a stratified random sampling method. Financial reporting quality is measured based on the level of discretionary accrual according to Modified Jones model. The results of regression analysis indicate there is a nonlinear relationship between family ownership and financial reporting quality. The findings support the agency theory, that stated the financial expertise of audit committee is an effective mechanism to improve financial reporting quality when the level of family ownership is low. However, when the family ownership is high, financial reporting quality has shown to be deteriorated. At a high family ownership level, financial expertise of audit committee is no longer an effective factor to constrain earning management activities. Legal expertise of audit committee is shown not to have any significant influence on the relationship between family ownership and financial reporting quality. The results of this study indicate the effectiveness of audit committee to reduce agency conflict between controlled and no controlled shareholders in the environment where the family ownership is dominant. Therefore, to enhance financial reporting quality in Malaysian firms, the financial expertise of audit committee should be among the corporate governance characteristics that need to be considered. The regulators of the country should set conditions on the appointment of audit committee that can give positive impact on the financial reporting quality for firms in Malaysia.
