UPM Institutional Repository

Audited quarterly accounts and earnings response coefficients


Citation

Malik, Mazrah and Fauzi Saidin, Saidatunur and Osman, Mohammad Noor Hisham (2016) Audited quarterly accounts and earnings response coefficients. DLSU Business & Economics Review, 25 (2). pp. 53-62. ISSN 0116-7111

Abstract

The production of quarterly accounts has become a mandatory requirement for listed companies in many countries. However, these accounts are not required to be audited in many jurisdictions, which expose these accounts to the risk of errors and manipulations. The purpose of this study is to examine the investors’ response towards auditor’s involvement in quarterly accounts. Analysis is based on matched pair sample of 60 listed companies in Bursa Malaysia in the year 2012. The result of the OLS regression shows that the earnings response coefficients of quarterly accounts that have been audited are statistically higher than those not audited. The result provides support for the contention that investors place greater reliability on quarterly accounts that have auditor’s involvement. The finding provides support for the need of auditor’s involvement in the quarterly accounts. However, additional costs associated with auditing the quarterly accounts should also be considered.


Download File

[img]
Preview
PDF (Abstract)
Audited quarterly accounts and earnings response coefficients.pdf

Download (101kB) | Preview

Additional Metadata

Item Type: Article
Divisions: Faculty of Economics and Management
Publisher: De La Salle University Publishing House
Keywords: Earnings response coefficient; Earnings reliability; Financial reporting quality; Quarterly accounts
Depositing User: Ms. Nida Hidayati Ghazali
Date Deposited: 08 Dec 2017 04:35
Last Modified: 08 Dec 2017 04:35
URI: http://psasir.upm.edu.my/id/eprint/55174
Statistic Details: View Download Statistic

Actions (login required)

View Item View Item