Saidin, Saidatunur Fauzi and Malek, Mazrah and Ibrahim, Daing Nasir and Kee, Phua Lian (2017) Investors’ response on the deviation between quarterly and annual earnings. In: 17th Annual Conference of the Asian Academic Accounting Association (2016 FourA Conference), 20-22 November 2016, Kuching, Sarawak.

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Abstract

Despite the benefits of timely information, concerns have been raised on the reliability of the quarterly accounts.The occurrence of deviation between audited annual accounts and cumulative quarterly accounts indicates the misstatements in the latter.This study examines investors’ response towards the occurrence of the deviation.Data is based on 792 listed companies of Bursa Malaysia in 2012.The results of the OLS regression show that the companies without earnings deviation have significantly higher earnings response coefficient than companies experiencing earnings deviation.It is also found that understated quarterly earnings companies have higher earnings response coefficient than overstated companies.Results imply that investors place higher reliability on the quarterly accounts produced by companies without earnings deviation. Higher reliability is placed on the understated quarterly earnings companies as compared to overstated companies.Findings suggest that investors do value the occurrence and types of earnings deviation.Therefore, steps should be taken to overcome the occurrence of deviation.

Item Type:	Conference or Workshop Item (Paper)
Additional Information:	Published in SHS Web of Conferences 34; Organized by: Institute for Strategic and Sustainable Accounting Development (ISSAD), Tunku Puteri Intan Safinaz School of Accountancy (TISSA), Universiti Utara Malaysia (UUM)
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting
Divisions:	Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
Depositing User:	Mrs. Norazmilah Yaakub
Date Deposited:	23 Feb 2017 03:44
Last Modified:	23 Feb 2017 03:44
URI:	https://repo.uum.edu.my/id/eprint/21025

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