Factors Impact Reducing Money Earning Manipulation withintheListed Malaysian Companies; theModerating Role ofAccounting Ethics

Abstract

This study aims to investigate the impact of three dimensions suggested by Beneish M-Score model on reducing money earning manipulation within listed companies in Malaysia. Also, examining the moderation role of accounting ethics toward the improvement of these factors on reducing money earning manipulation. These three dimensions called asset quality management, accrual quality management, and leverage quality management. This study follows the cross-section method. The questionnaire instrument is used to collect the data from 370 employees in financial and insurance business of Malaysia. The empirical analysis of structural model of the study revealed that the direct relationships of financial management transactions dimensions are significantly positively related to reducing money earning manipulation. The path analysis confirmed moderating effect of accounting ethics has also been found positively significant positive on the relationship between financial management transactions and reducing money earning manipulation. The present study is first of its kind to explore the moderating effect of accounting ethics among financial and insurance business of Malaysia. It suggested that financial management transactions are an important concept for management of financial and insurance organizations, which can considerably influence working environment and reduce money earning manipulation.