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: | Creators Email / ID Num. Mohd Suffian, Mohd Taufik UNSPECIFIED Mohd Sanusi, Zuraidah UNSPECIFIED Mastuki, Nor'azam noraz562@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: | Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI) |
| Journal or Publication Title: | Malaysian Accounting Review |
| UiTM Journal Collections: | UiTM Journals > Management & Accounting Review (MAR) |
| ISSN: | 1675-4077 |
| Volume: | 14 |
| Number: | 1 |
| Page Range: | pp. 26-47 |
| Keywords: | Real earnings management; Firm value; Information asymmetry |
| Date: | 2015 |
| URI: | https://ir.uitm.edu.my/id/eprint/14340 |
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AJ_MOHD TAUFIK MOHD SUFFIAN MAR 15.pdf
