This study aimed at investigating the value relevance of book value and earnings and the relationship between earnings and operating cash flow of two different financial reporting regimes in Malaysia. A market and nonmarket valuation approaches were utilised for that purpose. The result of market valuation approach of pool sample shows that book values and earnings are value relevant. We also observed that the change in financial reporting regime affects significantly the value relevance of book value and but not earnings. While book value and earnings are value relevant during the MASB period, only book value is value relevance during the FRS period. The result of non-market valuation approach on the other hand, shows that the change in financial reporting regime has no significant effect on the relationship between earnings and operating cash flow. The result of market valuation approach implicates that the introduction of new or improved standards under FRS regime strengthen the position of book value thus leaving earnings behind in equity valuation. The result of non-market valuation model
The aquaculture sector has been recognized as a crucial and high-priority area in Malaysia's economic development. The study's goal is to investigate the accounting practices used by Malaysian aquaculture-listed firms. As samples, two listed aquaculture enterprises were chosen. The accounting processes of the listed aquaculture companies were examined using content analysis. By looking at how the aquaculture business was covered in the annual reports of these chosen companies, the study's goal was achieved. The study specifically looked at the listed businesses' accounting processes for aquaculture definition, recognition, measurement, presentation, and disclosure. The major conclusions showed that the two companies accounting practices in terms of biological asset-aquaculture definition, recognition, measurement, presentation, and disclosure comply with the standards of MFRS 141 Agriculture. The findings of this study added to our understanding of agricultural accounting. The findings will offer new aquaculture-listed firms accounting best practices guidelines. The findings are also anticipated to help Malaysian businesses embrace MFRS 141 by improving the regulatory environment.
This paper develops an improved equity valuation model that predicts firm's market value using firm's Balanced Scorecard (BSC) metrics. It is developed in response to the declining association between market value and, book value and earnings. A 10-year data of 300 firms listed on Bursa Malaysia Main Market was selected as sample. The data of market value and BSC measures were transformed into their natural log form (ln) in order to obtain normal and compatible data. The model shows that BSC better explains the market value than the conventional models.
The Malaysian Financial Reporting Standard 141 (MFRS 141) on agriculture requires all agriculture companies to measure their biological assets based on fair value less cost to sell. Some researchers argue that fair values of biological assets are not reliable and relevant whereas the others suggest that they are value relevant. The purpose of this study is to investigate the value relevance of biological assets and the change in the fair value of biological assets in Malaysia, as measured in accordance with the MFRS 141. Specifically, this investigation looked into whether or not biological assets and changes in fair value over time are relevant to market value. In particular, the study concentrated on assessing whether biological assets and changes in their fair values have a substantial influence on the market value. The sample for this study is made of agriculturally-related companies that had their shares listed on a public stock exchange in Malaysia between 2018 and 2020. The research project was carried out in Malaysia. The investigation was conducted in a manner that adhered to the value relevance technique that Ohlson (1995) recommended. It was revealed that the biological asset and the change in fair value that was established by using MFRS 141 are both major factors that play a role in the process of determining market value. The results lead the researchers to the conclusion that the adoption of MFRS 141 -Agricultural resulted in an improvement in the quality of financial reporting of biological assets in Malaysia. Future studies should include sample from ASEAN, Asia or developed countries so that the results can be generalised.
The aim of this study is to explore the effect of leverage and management skills on the return of the shareholder. The study selected the top 30 Bursa Malaysia companies listed as a sample. Proxies of leverage, management expertise, size, price to book ratio, effective tax rate and industry effects are the data collected. The data are collected from the Thomson Reuters from the year 2013 until 2017. The study employed multiple regression analysis to prove the existence of relationships between shareholder's return and other variables. The main results of the study show the influence of total debt, managerial skills, company size and industry on shareholder's return. However, price to book and effective tax rate have no significant influence on shareholder's return. The results indicated the importance of total debt and managerial skills towards shareholder's return when size and industry are controlled. The study contributes to current literature in the field.
Timeliness of audited financial reports is pondered to be a crucial and important factor affecting the usefulness and quality of information that is available to its users. This study examined the effect of corporate governance on audit report lag in listed companies in the Malaysian construction industry. The construction industry in Malaysia is one of the most challenging and dynamic. The Agency Theory is a relevant theory to this study as it explains corporate governance which functions as an oversight mechanism to lessen agency problems. This study particularly examined the effect of board size, board diversity, board meeting, CEO duality, audit committee size and type of auditor on audit report lag. The study collected data covering a three-year period from 2015 to 2017. The study sample comprised of 138 Malaysian listed companies in the sector from Bursa Malaysia. Data were extracted from the annual report of the sample companies that was downloaded from the Bursa Malaysia website. Regression analysis was performed to examine the relationship between corporate governance attributes and audit report lag. The results demonstrated that board size, board diversity and auditor type have a significant relationship with audit report lag. Meanwhile, board meeting, CEO duality and audit committee size do not have a significant relationship with audit report lag. This study contributes to the literature on corporate governance and auditing. Particular explanations of the findings, implications, limitation and recommendation for future research are highlighted.
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