Using 180 manufacturing firms from 1998 to 2004, the paper proves that insiders with controlling interest more than 36.78% increase earnings management (discretionary accruals) by 10.6%. However, they are risk-adverse and avoid inefficient investment after the financial crisis. On the other...

Using 196 Malaysian public listed firms, the study investigates the inter-relationship between executive compensation, earnings management and over investment. Although there is no evidence that executive directors enhance their compensation packages through earnings management, there is a...