Real earnings management and firm value: Empirical evidence from Malaysia / Mohd Taufik Mohd Suffian, Zuraidah Mohd Sanusi and Nor'Azam Mastuki

Mohd Suffian, Mohd Taufik and Mohd Sanusi, Zuraidah and Mastuki, Nor'azam (2015) Real earnings management and firm value: Empirical evidence from Malaysia / Mohd Taufik Mohd Suffian, Zuraidah Mohd Sanusi and Nor'Azam Mastuki. Malaysian Accounting Review, 14 (1). pp. 26-47. ISSN 1675-4077

[img] Text
AJ_MOHD TAUFIK MOHD SUFFIAN MAR 15.pdf

Download (28MB)

Abstract

This research was conducted to study the connection between real earnings management (REM) activities and firm value. A sample of 6,216 suspected firms was collected from 2004 to 2011, We derived the relationship using the methods applied by Roychowdhury (2006). Using linear regression to determine the relationship of each REM activity of suspected firms with the firm value, we found a significant positive relationship between REM activities and firm value. When firms had more REM activities, the firm value increased. This outcome was caused by the existence of information asymmetry, which creates a friction between managers and shareholders, A significant relationship was also observed between leverage and firm value as well as between size and firm value. Thus, REM activities were concluded to increase firms' value.

Item Type: Article
Creators:
CreatorsEmail
Mohd Suffian, Mohd TaufikUNSPECIFIED
Mohd Sanusi, ZuraidahUNSPECIFIED
Mastuki, Nor'azamnoraz562@salam.uitm.edu.my
Subjects: H Social Sciences > HD Industries. Land use. Labor > Corporations
H Social Sciences > HF Commerce > Accounting. Bookkeeping > Periodicals. Societies. Serials
Divisions: Accounting Research Institute (ARI)
Journal or Publication Title: Malaysian Accounting Review
ISSN: 1675-4077
Volume: 14
Number: 1
Page Range: pp. 26-47
Item ID: 14340
Uncontrolled Keywords: Real earnings management; Firm value; Information asymmetry
Last Modified: 19 Aug 2016 07:18
Depositing User: Staf Pendigitalan 1
URI: http://ir.uitm.edu.my/id/eprint/14340

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year