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/ http://ir.uitm.edu.my/id/eprint/14340/1/AJ_MOHD%20TAUFIK%20MOHD%20SUFFIAN%20MAR%2015.pdf

id	uitm-14340
recordtype	eprints
spelling	uitm-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
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Teknologi MARA
building	UiTM Institutional Repository
collection	Online Access
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/ http://ir.uitm.edu.my/id/eprint/14340/1/AJ_MOHD%20TAUFIK%20MOHD%20SUFFIAN%20MAR%2015.pdf
first_indexed	2023-09-18T22:51:24Z
last_indexed	2023-09-18T22:51:24Z
_version_	1777417568262291456

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

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