Investors’ response on the deviation between quarterly and annual earnings
Despite the benefits of timely information, concerns have been raised on the reliability of the quarterly accounts. The occurrence of deviation between audited annual accounts and cumulative quarterly accounts indicates the misstatements in the latter. This study examines investors’ response tow...
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| Format: | Article |
| Language: | en |
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EDP Sciences
2017
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| Subjects: | |
| Online Access: | http://eprints.usm.my/37021/1/%28Investors%E2%80%99_response_on_the_deviation%29_shsconf_four2017_07002.pdf http://eprints.usm.my/37021/ https://doi.org/10.1051/shsconf/20173407002 |
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| _version_ | 1834501117944266752 |
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| author | Fauzi Saidin, Saidatunur Malek, Mazrah Ibrahim, Daing Nasir Phua, Lian Kee |
| author_facet | Fauzi Saidin, Saidatunur Malek, Mazrah Ibrahim, Daing Nasir Phua, Lian Kee |
| author_sort | Fauzi Saidin, Saidatunur |
| building | Hamzah Sendut Library |
| collection | Institutional Repository |
| content_provider | Universiti Sains Malaysia |
| content_source | USM Institutional Repository |
| continent | Asia |
| country | Malaysia |
| description | Despite the benefits of timely information, concerns have been
raised on the reliability of the quarterly accounts. The occurrence of
deviation between audited annual accounts and cumulative quarterly
accounts indicates the misstatements in the latter. This study examines
investors’ response towards the occurrence of the deviation. Data is based
on 792 listed companies of Bursa Malaysia in 2012. The results of the OLS
regression show that the companies without earnings deviation have
significantly higher earnings response coefficient than companies
experiencing earnings deviation. It is also found that understated quarterly
earnings companies have higher earnings response coefficient than
overstated companies. Results imply that investors place higher reliability
on the quarterly accounts produced by companies without earnings
deviation. Higher reliability is placed on the understated quarterly earnings
companies as compared to overstated companies. Findings suggest that
investors do value the occurrence and types of earnings deviation.
Therefore, steps should be taken to overcome the occurrence of deviation.
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| format | Article |
| id | my.usm.eprints.37021 |
| institution | Universiti Sains Malaysia |
| language | en |
| publishDate | 2017 |
| publisher | EDP Sciences |
| record_format | eprints |
| spelling | my.usm.eprints.37021 http://eprints.usm.my/37021/ Investors’ response on the deviation between quarterly and annual earnings Fauzi Saidin, Saidatunur Malek, Mazrah Ibrahim, Daing Nasir Phua, Lian Kee HD28-70 Management. Industrial Management Despite the benefits of timely information, concerns have been raised on the reliability of the quarterly accounts. The occurrence of deviation between audited annual accounts and cumulative quarterly accounts indicates the misstatements in the latter. This study examines investors’ response towards the occurrence of the deviation. Data is based on 792 listed companies of Bursa Malaysia in 2012. The results of the OLS regression show that the companies without earnings deviation have significantly higher earnings response coefficient than companies experiencing earnings deviation. It is also found that understated quarterly earnings companies have higher earnings response coefficient than overstated companies. Results imply that investors place higher reliability on the quarterly accounts produced by companies without earnings deviation. Higher reliability is placed on the understated quarterly earnings companies as compared to overstated companies. Findings suggest that investors do value the occurrence and types of earnings deviation. Therefore, steps should be taken to overcome the occurrence of deviation. EDP Sciences 2017 Article PeerReviewed application/pdf en http://eprints.usm.my/37021/1/%28Investors%E2%80%99_response_on_the_deviation%29_shsconf_four2017_07002.pdf Fauzi Saidin, Saidatunur and Malek, Mazrah and Ibrahim, Daing Nasir and Phua, Lian Kee (2017) Investors’ response on the deviation between quarterly and annual earnings. SHS Web of Conferences, 34 (07002). pp. 1-7. ISSN 2261-2424 https://doi.org/10.1051/shsconf/20173407002 |
| spellingShingle | HD28-70 Management. Industrial Management Fauzi Saidin, Saidatunur Malek, Mazrah Ibrahim, Daing Nasir Phua, Lian Kee Investors’ response on the deviation between quarterly and annual earnings |
| title | Investors’ response on the deviation between quarterly and annual earnings |
| title_full | Investors’ response on the deviation between quarterly and annual earnings |
| title_fullStr | Investors’ response on the deviation between quarterly and annual earnings |
| title_full_unstemmed | Investors’ response on the deviation between quarterly and annual earnings |
| title_short | Investors’ response on the deviation between quarterly and annual earnings |
| title_sort | investors’ response on the deviation between quarterly and annual earnings |
| topic | HD28-70 Management. Industrial Management |
| url | http://eprints.usm.my/37021/1/%28Investors%E2%80%99_response_on_the_deviation%29_shsconf_four2017_07002.pdf http://eprints.usm.my/37021/ https://doi.org/10.1051/shsconf/20173407002 |
| url_provider | http://eprints.usm.my/ |