Company-specific Characteristics and Market-driven Fixed Asset Revaluation in an Emerging Asian Economy / Md. Tahidur Rahman and Syed Zabid Hossain

Rahman, Md. Tahidur and Hossain, Syed Zabid (2020) Company-specific Characteristics and Market-driven Fixed Asset Revaluation in an Emerging Asian Economy / Md. Tahidur Rahman and Syed Zabid Hossain. Management & Accounting Review (MAR), 19 (3): 7. pp. 151-184. ISSN 2550-1895

Official URL: https://mar.uitm.edu.my/

Abstract

This study aimed to explore the company-specific and market factors driving fixed asset revaluation (FAR) in an emerging economy. Our research was based on a sample of 142 companies listed on the Dhaka Stock Exchange (DSE) – the main bourse of Bangladesh. The binary logistic regression model was the main instrument used to measure the significance level of variables and test the hypotheses. The study found that market conditions, profitability, nationality, debt-to-asset ratio, fixed assets intensity, and company size could influence FAR decisions significantly. But, company age and current ratio have failed FAR decisions insignificantly. Since there are suspicions about the creative practice of FAR, users need to be cautious when explaining and utilizing the information communicated via financial statements of companies that revalued their assets. Besides, regulators should strictly enforce the laws to avoid selective disclosures, and companies should fully disclose market-sensitive information so that corporate stakeholders promptly receive FAR-related disclosures. This paper could serve a large assortment of stakeholders interested in knowing the drivers behind and effects of FAR. Inclusion and the explanation of three new factors, corporate nationality, age, and market condition, could be an extension of the existing FAR literature.

Metadata

Item Type: Article
Creators:
Creators
Email / ID Num.
Rahman, Md. Tahidur
UNSPECIFIED
Hossain, Syed Zabid
UNSPECIFIED
Subjects: H Social Sciences > HB Economic Theory. Demography > Business cycles. Economic fluctuations. Economic indicators
H Social Sciences > HC Economic History and Conditions > Consumers. Consumer demand. Consumption
Divisions: Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI)
Journal or Publication Title: Management & Accounting Review (MAR)
UiTM Journal Collections: UiTM Journal > Management & Accounting Review (MAR)
ISSN: 2550-1895
Volume: 19
Number: 3
Page Range: pp. 151-184
Keywords: Fixed asset revaluation, Fair value, IAS 16
Date: December 2020
URI: https://ir.uitm.edu.my/id/eprint/42279
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