Cover Image

Value relevance of Other Comprehensive income and its Available-For-Sale Financial Instruments (AFS) and Revaluation Surplus of Property, Plant and Equipment (REV) components

Studies on value relevance of Other Comprehensive Income (OCI) have thus far provided mixed evidences. Prior studies also found that fair value reporting has a significant impact on the value relevance of OCI. However, most studies on value relevance of OCI focused on developed countries where t...

Full description

Saved in:
Bibliographic Details
Main Authors: Yousefinejad, Maryam, Azlina Ahmad,, Zaini Embong,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2017
Online Access:http://journalarticle.ukm.my/13301/1/19770-80928-1-PB.pdf
http://journalarticle.ukm.my/13301/
http://ejournal.ukm.my/ajac/issue/view/1068/showToc
Tags: Add Tag
No Tags, Be the first to tag this record!
id my-ukm.journal.13301
record_format eprints
spelling my-ukm.journal.133012019-08-27T21:22:13Z http://journalarticle.ukm.my/13301/ Value relevance of Other Comprehensive income and its Available-For-Sale Financial Instruments (AFS) and Revaluation Surplus of Property, Plant and Equipment (REV) components Yousefinejad, Maryam Azlina Ahmad, Zaini Embong, Studies on value relevance of Other Comprehensive Income (OCI) have thus far provided mixed evidences. Prior studies also found that fair value reporting has a significant impact on the value relevance of OCI. However, most studies on value relevance of OCI focused on developed countries where the capital market is more efficient. In these settings due to the existence of active market, fair valuation of assets may not pose a major problem. Therefore, more studies are needed to better understand the value relevance of such OCI especially in developing countries which have less efficient market. Thus, this study examined whether OCI and its components, Available-For-Sale Financial Instruments (AFS) andRevaluation Surplus of Property, Plant and Equipment (REV) are value relevant in Malaysia as a developing country. In order to fulfill these objectives, this study hypothesized that OCI and its components are associated with share price. These hypotheses were empirically tested using a sample of 1,419 firm years observations from 2011 to 2013, of firms listed on the Main Market of Bursa Malaysia. The results of Panel Analysis indicates that OCI and its components are value relevant. These results remain robust after additional analyses. This study provides additional evidence of value relevance of other comprehensive income in a developing country. The results indicate that the move towards a more comprehensive income reporting through the preparation of the Statement of Comprehensive Income results in more informative financial reporting. Penerbit Universiti Kebangsaan Malaysia 2017 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/13301/1/19770-80928-1-PB.pdf Yousefinejad, Maryam and Azlina Ahmad, and Zaini Embong, (2017) Value relevance of Other Comprehensive income and its Available-For-Sale Financial Instruments (AFS) and Revaluation Surplus of Property, Plant and Equipment (REV) components. Asian Journal of Accounting and Governance, 8 ((SI)). pp. 133-143. ISSN 2180-3838 http://ejournal.ukm.my/ajac/issue/view/1068/showToc
institution Universiti Kebangsaan Malaysia
building Perpustakaan Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description Studies on value relevance of Other Comprehensive Income (OCI) have thus far provided mixed evidences. Prior studies also found that fair value reporting has a significant impact on the value relevance of OCI. However, most studies on value relevance of OCI focused on developed countries where the capital market is more efficient. In these settings due to the existence of active market, fair valuation of assets may not pose a major problem. Therefore, more studies are needed to better understand the value relevance of such OCI especially in developing countries which have less efficient market. Thus, this study examined whether OCI and its components, Available-For-Sale Financial Instruments (AFS) andRevaluation Surplus of Property, Plant and Equipment (REV) are value relevant in Malaysia as a developing country. In order to fulfill these objectives, this study hypothesized that OCI and its components are associated with share price. These hypotheses were empirically tested using a sample of 1,419 firm years observations from 2011 to 2013, of firms listed on the Main Market of Bursa Malaysia. The results of Panel Analysis indicates that OCI and its components are value relevant. These results remain robust after additional analyses. This study provides additional evidence of value relevance of other comprehensive income in a developing country. The results indicate that the move towards a more comprehensive income reporting through the preparation of the Statement of Comprehensive Income results in more informative financial reporting.
format Article
author Yousefinejad, Maryam
Azlina Ahmad,
Zaini Embong,
spellingShingle Yousefinejad, Maryam
Azlina Ahmad,
Zaini Embong,
Value relevance of Other Comprehensive income and its Available-For-Sale Financial Instruments (AFS) and Revaluation Surplus of Property, Plant and Equipment (REV) components
author_facet Yousefinejad, Maryam
Azlina Ahmad,
Zaini Embong,
author_sort Yousefinejad, Maryam
title Value relevance of Other Comprehensive income and its Available-For-Sale Financial Instruments (AFS) and Revaluation Surplus of Property, Plant and Equipment (REV) components
title_short Value relevance of Other Comprehensive income and its Available-For-Sale Financial Instruments (AFS) and Revaluation Surplus of Property, Plant and Equipment (REV) components
title_full Value relevance of Other Comprehensive income and its Available-For-Sale Financial Instruments (AFS) and Revaluation Surplus of Property, Plant and Equipment (REV) components
title_fullStr Value relevance of Other Comprehensive income and its Available-For-Sale Financial Instruments (AFS) and Revaluation Surplus of Property, Plant and Equipment (REV) components
title_full_unstemmed Value relevance of Other Comprehensive income and its Available-For-Sale Financial Instruments (AFS) and Revaluation Surplus of Property, Plant and Equipment (REV) components
title_sort value relevance of other comprehensive income and its available-for-sale financial instruments (afs) and revaluation surplus of property, plant and equipment (rev) components
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2017
url http://journalarticle.ukm.my/13301/1/19770-80928-1-PB.pdf
http://journalarticle.ukm.my/13301/
http://ejournal.ukm.my/ajac/issue/view/1068/showToc
_version_ 1643739037078388736
score 13.211869

Similar Items