BOARD AGE DIVERSITY AND FINANCIAL REPORTING QUALITY: THE CASE OF MALAYSIAN CORPORATIONS

Dr. Odu Victor; ONATUYEH ARUOBOGHA EDWIN

Volume : VIII, Issue : IV, April - 2019

BOARD AGE DIVERSITY AND FINANCIAL REPORTING QUALITY: THE CASE OF MALAYSIAN CORPORATIONS

Dr. Odu Victor, Onatuyeh Aruobogha Edwin

Abstract :

This study investigates the nexus between board age diversity and financial reporting quality of Malaysian listed corporations. The study is focused on a sample of eighty (80) corporations listed on the main market of Bursa Malaysia from 2008–2017. The study extends board diversity literature in observing the relationship between board age and financial reporting quality measured by Accruals Quality and Financial Restatement. We found that board age diversity has no significant relationship with financial reporting quality as measured by accruals quality model. However, the relationship between board age diversity and financial reporting quality as measured by financial statement restatement was found to have a significant negative relationship. We recommend the appointment of fairly older director into the board of publicly quoted companies to enhance conservative earnings management and improve the quality of financial reporting