Abstract
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.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
