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Real earnings management and firm value: Empirical evidence from Malaysia / Mohd Taufik Mohd Suffian, Zuraidah Mohd Sanusi and Nor'Azam Mastuki

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...

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Main Authors: Mohd Suffian, Mohd Taufik, Mohd Sanusi, Zuraidah, Mastuki, Nor'azam
Format: Article
Language:English
Published: Accounting Research Institute (ARI) & Faculty of Accountancy 2015
Subjects:
Corporations
Periodicals. Societies. Serials
Online Access:http://ir.uitm.edu.my/id/eprint/14340/1/AJ_MOHD%20TAUFIK%20MOHD%20SUFFIAN%20MAR%2015.pdf
http://ir.uitm.edu.my/id/eprint/14340/
https://mar.uitm.edu.my/
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spelling my.uitm.ir.143402016-08-19T07:18:47Z http://ir.uitm.edu.my/id/eprint/14340/ Real earnings management and firm value: Empirical evidence from Malaysia / Mohd Taufik Mohd Suffian, Zuraidah Mohd Sanusi and Nor'Azam Mastuki Mohd Suffian, Mohd Taufik Mohd Sanusi, Zuraidah Mastuki, Nor'azam Corporations Periodicals. Societies. Serials 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. Accounting Research Institute (ARI) & Faculty of Accountancy 2015 Article PeerReviewed text en http://ir.uitm.edu.my/id/eprint/14340/1/AJ_MOHD%20TAUFIK%20MOHD%20SUFFIAN%20MAR%2015.pdf Mohd Suffian, Mohd Taufik and Mohd Sanusi, Zuraidah and Mastuki, Nor'azam (2015) Real earnings management and firm value: Empirical evidence from Malaysia / Mohd Taufik Mohd Suffian, Zuraidah Mohd Sanusi and Nor'Azam Mastuki. Malaysian Accounting Review, 14 (1). pp. 26-47. ISSN 1675-4077 https://mar.uitm.edu.my/
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
topic Corporations
Periodicals. Societies. Serials
spellingShingle Corporations
Periodicals. Societies. Serials
Mohd Suffian, Mohd Taufik
Mohd Sanusi, Zuraidah
Mastuki, Nor'azam
Real earnings management and firm value: Empirical evidence from Malaysia / Mohd Taufik Mohd Suffian, Zuraidah Mohd Sanusi and Nor'Azam Mastuki
description 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.
format Article
author Mohd Suffian, Mohd Taufik
Mohd Sanusi, Zuraidah
Mastuki, Nor'azam
author_facet Mohd Suffian, Mohd Taufik
Mohd Sanusi, Zuraidah
Mastuki, Nor'azam
author_sort Mohd Suffian, Mohd Taufik
title Real earnings management and firm value: Empirical evidence from Malaysia / Mohd Taufik Mohd Suffian, Zuraidah Mohd Sanusi and Nor'Azam Mastuki
title_short Real earnings management and firm value: Empirical evidence from Malaysia / Mohd Taufik Mohd Suffian, Zuraidah Mohd Sanusi and Nor'Azam Mastuki
title_full Real earnings management and firm value: Empirical evidence from Malaysia / Mohd Taufik Mohd Suffian, Zuraidah Mohd Sanusi and Nor'Azam Mastuki
title_fullStr Real earnings management and firm value: Empirical evidence from Malaysia / Mohd Taufik Mohd Suffian, Zuraidah Mohd Sanusi and Nor'Azam Mastuki
title_full_unstemmed Real earnings management and firm value: Empirical evidence from Malaysia / Mohd Taufik Mohd Suffian, Zuraidah Mohd Sanusi and Nor'Azam Mastuki
title_sort real earnings management and firm value: empirical evidence from malaysia / mohd taufik mohd suffian, zuraidah mohd sanusi and nor'azam mastuki
publisher Accounting Research Institute (ARI) & Faculty of Accountancy
publishDate 2015
url http://ir.uitm.edu.my/id/eprint/14340/1/AJ_MOHD%20TAUFIK%20MOHD%20SUFFIAN%20MAR%2015.pdf
http://ir.uitm.edu.my/id/eprint/14340/
https://mar.uitm.edu.my/
_version_ 1685648504883511296
score 13.211869

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