Value Relevance of Financial Information in Malaysian Listed Firms: Real Earnings Management’s Perspective

Aboubakar Mirza and Javaria Abbas

Journal of Accounting and Finance in Emerging Economies, 2022, vol. 8, issue 1, 227-238

Abstract: Purpose: This study investigates the value relevance of financial information i.e., earnings (EPS), the book value of equity (BVE), and cash flow from operations (CFO). The study further investigates the influence of real EPS management (REM) on the value relevance of financial information because firms are now switching toward real earnings management rather than accrual-based earnings management (ABEM).Methodology: A sample of 250 public listed companies was used to test the hypotheses over the period 2014-2018. Using Driscoll-Kraay regression.Findings: This study finds that earnings, the book value of equity, and cash flow from operations are value relevant, and real earnings management moderates the value relevance of EPS, book value of equity, and cash flow from operations.Implications: This study has specific policy implications for regulators to push auditors to detect real earnings management to improve the value relevance of financial information.

Keywords: Real Earnings Management; Cash Flow from Operations; Book Value of Equity; Earnings; Value Relevance of Financial Information (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://publishing.globalcsrc.org/ojs/index.php/jafee/article/view/2269/1407 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:src:jafeec:v:8:y:2022:i:1:p:227-238

DOI: 10.26710/jafee.v8i1.2269

Access Statistics for this article

More articles in Journal of Accounting and Finance in Emerging Economies from CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan Contact information at EDIRC.
Bibliographic data for series maintained by Rabia Rasheed ().