Mohd Halim Kadri

Value Relevance of Book Value and Earnings: Evidence from Two Different Financial Reporting Regimes

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 implicates that the level of relationship between earnings and operating cash flow persists as long as operating cash flow comprise of cash and cash equivalent components whereas earnings comprise of cash and accruals components. The study contributes to the existing literature in the area of the effect of adoption of FRS on value relevance of accounting numbers in Malaysia.

Relationship Between Market Value and Book Value of Malaysian Firms Under Pre and Post FRS

Many researches have been conducted on the effect of adoption of IFRS on value relevance of firms e.g. Ahmed and Goodwin [2006], Harris and Muller [1999], Bartov et al. [2005], Lin and Chen [2005], Horton and Serafeim [2006], Schiebel [2006] and Niskanen et al. [2000]. Even though they were employing similar model [Ohlson, 1995], their results were not conclusive. In Malaysia, the effect of adoption of FRS on value relevance of accounting numbers is still not known yet. Current study utilised Ohlson [1995] model to investigate the relationship between market value, book value and earnings [value relevance] of Malaysian [property] firms under two different financial reporting environments namely MASB environment and FRS environment. The results show that significant relationship exists between market value, book value and earnings throughout the period under study. When the sample is separated into MASB and FRS periods, a more significant relationship between market value, book value and earnings exists during the FRS period.

Balanced scorecard equity valuation model

This paper develops an improved equity valuation model that predicts firms market value using firms 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.

Value Relevance of Book Value and Earnings: A Comparison between Islamic andConventional Banks in Malaysia

This study aimed at investigating the value relevance of book value and earnings of Malaysian Islamic and conventional banks. A market valuation approach was utilised for that purpose. The result of pool sample shows that book value and earnings of Malaysian banks are value relevant. It was also observed that book value and earnings of Islamic and conventional banks are value relevant when they are separated. However, it was found that the explanatory power towards market value provided by Islamic bank is far behind their conventional counterparts. The results implicate that book value and earnings of Islamic banks provide less information content towards market value despite their relevance. This suggests further investigation in future studies. Finally, the study contributes to the existing literature in the area of the value relevance of financial information in Malaysia.

The Relevance of Balanced Scorecard in Predicting Future Market Price

This paper investigates the ability of Balanced Scorecard (BSC) measures in predicting future market price. A 6-year data of Malaysian listed firms was selected as sample. The results show that firms BSC measures are able to predict future market price of Malaysian firms.

RETRACTED ARTICLE: The relevance of balanced scorecard in predicting future market price

This paper investigates the ability of Balanced Scorecard (BSC) measures in predicting future market price. A 6-year data of Malaysian listed firms was selected as sample. The results show that firms BSC measures are able to predict future market price of Malaysian firms.

Notice of Retraction The relevance of balanced scorecard in predicting future market price

This paper investigates the ability of Balanced Scorecard (BSC) measures in predicting future market price. A 6-year data of Malaysian listed firms was selected as sample. The results show that firms BSC measures are able to predict future market price of Malaysian firms.

Class Size, Class Ranking and Students’ Achievement

This study investigates the effect of class size and class ranking on the achievement of accounting students. T test and regression analyses were used to analyze the data. The results of the t-test on class size indicated that students in small classes performed better than students in large classes in the on-going assessment whereas students in large classes performed better than students in small classes in the final exam. The T test on class ranking indicated that ‘ranking 1’ class students had consistently outperformed their counterparts in ‘ranking 2’ classes in the on-going assessment, final exam and overall achievement. Regression analysis indicated that class size, class ranking and on-going assessment contributed significantly to the prediction of students’ overall achievement.