THE EFFECT OF OWNERSHIP STRUCTURE ON CORPORATE SOCIAL RESPONSIBILITY AND EARNINGS QUALITY

Abstract

The purpose of this paper is to identify the issue of corporate governance, corporate social responsibility, and earnings quality. This study also helps the stakeholders to determine the actual practices amongst listed companies. The positive significant relationship between the independent variable, ownership structure, corporate social responsibility, and dependent variable earnings quality signals all the stakeholders regarding the unethical activities among companies in Malaysia that manipulate their reported earnings. The result of this study may also provide valuable findings to regulators (standard setters) such as the Security Commission and Bursa Malaysia. In ensuring high quality of reported earnings, regulators and professional bodies may highlight some of the important findings to improve and take appropriate actions. Additionally, the findings will create public awareness of the extent of earnings quality issues in Malaysia. Through corporate governance compliance and practice by standard setters, it would reduce the ability to manage the earnings and increase the transparency of the reported earnings.  

Keywords: Corporate Governance, Corporate Social Responsibility, And Earnings Quality.