Alhamdulillah, percubaan pertama untuk menulis artikel dalam refereed journal hampir berjaya. Sepucuk emel menerangkan tentang penerimaan artikel ini untuk diterbitkan dalam JOFRA telah diterima. Inilah tajuk dan abstrak artikel tersebut:
Value Relevance of Book Value and
Earnings: Evidence from Two
Different Financial Reporting
Regimes
Earnings: Evidence from Two
Different Financial Reporting
Regimes
Mohd Halim Kadri, Rozainun Abdul Aziz and Muhd Kamil Ibrahim
Faculty of Accountancy & Accounting Research Institute
Universiti Teknologi MARA, Johor
Email: mhalim@johor.uitm.edu.my
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.
Keywords: Market value, book value, earnings, operating cash flow, Malaysian property sector.
