Movement of hidden reserves: empirical evidence from Malaysia / Henny Hazliza Mohd Tahir ... [et al.]

Mohd Tahir, Henny Hazliza and Kadri, Mohd Halim and Haron, Rosmawati and Ibrahim, Muhd Kamil (2012) Movement of hidden reserves: empirical evidence from Malaysia / Henny Hazliza Mohd Tahir ... [et al.]. Terengganu International Finance and Economics Journal (TIFEJ), 2 (2). pp. 48-53. ISSN 2232-0539

Abstract

Reserves in accounting can be of different kinds and created for diverse reasons. Most of them are revealed publicly in one way or another. When the firm’s net worth swerves from its economic value, it is said to have hidden reserves. Two sources of hidden reserves exist: accountant’s misevaluation of portfolio positions that accounting principles designates as on balance sheet items and the systematic neglect of off balance sheet sources of value that these principles do not permit to be formally recorded (Kane & Unal, 1990). This paper used the model developed by Kane & Unal (1990) to study the movement of the hidden reserves in Malaysia from the year 1999 to 2008. In effect, the analysis found that the firms’ values in Malaysia are overstated and the values of the hidden reserves are insignificant throughout the year under study.

Metadata

Item Type: Article
Creators:
Creators
Email / ID Num.
Mohd Tahir, Henny Hazliza
henny030@johor.uitm
Kadri, Mohd Halim
UNSPECIFIED
Haron, Rosmawati
UNSPECIFIED
Ibrahim, Muhd Kamil
UNSPECIFIED
Subjects: H Social Sciences > HF Commerce > Accounting. Bookkeeping > Periodicals. Societies. Serials
H Social Sciences > HF Commerce > Accounting. Bookkeeping > Malaysia
H Social Sciences > HF Commerce > Accounting. Bookkeeping > Balance sheet. Financial statements. Corporation reports. Including pro forma statements > Malaysia
Divisions: Universiti Teknologi MARA, Terengganu > Dungun Campus > Faculty of Accountancy
Journal or Publication Title: Terengganu International Finance and Economics Journal (TIFEJ)
UiTM Journal Collections: Others > Terengganu International Finance and Economics Journal (TIFEJ)
ISSN: 2232-0539
Volume: 2
Number: 2
Page Range: pp. 48-53
Keywords: Hidden Reserves, Net Book Value, Market Value
Date: 2012
URI: https://ir.uitm.edu.my/id/eprint/60064
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