Nature of losses and the value relevance of earnings and book values : the case of Malaysian companies / Fatmawati Jusoh

The purpose of this study is to investigate the role of earnings and book value in explaining market valuation for firms reporting loss. In this study, it is suggested that loss are not homogenous across firms, and specifically explores the economics of two types of loss, which are (1) transitory...

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Main Author:	Jusoh, Fatmawati
Format:	Thesis
Language:	English
Published:	2005
Subjects:	Periodicals Societies Serials
Online Access:	https://ir.uitm.edu.my/id/eprint/3754/1/TM_FATMAWATI%20JUSOH%20AC%2005_5%201.pdf
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id	my-uitm-ir.3754
record_format	uketd_dc
spelling	my-uitm-ir.37542016-09-22T03:51:01Z Nature of losses and the value relevance of earnings and book values : the case of Malaysian companies / Fatmawati Jusoh 2005 Jusoh, Fatmawati Periodicals. Societies. Serials The purpose of this study is to investigate the role of earnings and book value in explaining market valuation for firms reporting loss. In this study, it is suggested that loss are not homogenous across firms, and specifically explores the economics of two types of loss, which are (1) transitory loss and (2) recurring loss. Transitory loss is temporary and do not reflect the ongoing economic circumstances of the firm, whereas recurring loss is consecutive loss that. are due to ongoing poor operating performance. Recurring loss could lead to either an adaptation by the firm to return to profitability or abandonment of the firm. The sample comprises of loss companies, which are listed on the Main Board of Bursa Malaysia from 1994 to 2003. An equity valuation model developed by Ohlson (1995) is employed to test the hypotheses. Additionally, logit analysis is also carried out to further examine the probability of the occurrence of the two independent variables. Two hypotheses are tested; (1) For transitory loss, earnings will have a non-negative association with market value (2) For recurring loss, earnings will have a negative association with market value. The empirical evidence for this study show mixed results over the six years analysis. VIII 2005 Thesis https://ir.uitm.edu.my/id/eprint/3754/ https://ir.uitm.edu.my/id/eprint/3754/1/TM_FATMAWATI%20JUSOH%20AC%2005_5%201.pdf text en public masters Universiti Teknologi MARA Faculty of Accountancy
institution	Universiti Teknologi MARA
collection	UiTM Institutional Repository
language	English
topic	Periodicals Societies Serials
spellingShingle	Periodicals Societies Serials Jusoh, Fatmawati Nature of losses and the value relevance of earnings and book values : the case of Malaysian companies / Fatmawati Jusoh
description	The purpose of this study is to investigate the role of earnings and book value in explaining market valuation for firms reporting loss. In this study, it is suggested that loss are not homogenous across firms, and specifically explores the economics of two types of loss, which are (1) transitory loss and (2) recurring loss. Transitory loss is temporary and do not reflect the ongoing economic circumstances of the firm, whereas recurring loss is consecutive loss that. are due to ongoing poor operating performance. Recurring loss could lead to either an adaptation by the firm to return to profitability or abandonment of the firm. The sample comprises of loss companies, which are listed on the Main Board of Bursa Malaysia from 1994 to 2003. An equity valuation model developed by Ohlson (1995) is employed to test the hypotheses. Additionally, logit analysis is also carried out to further examine the probability of the occurrence of the two independent variables. Two hypotheses are tested; (1) For transitory loss, earnings will have a non-negative association with market value (2) For recurring loss, earnings will have a negative association with market value. The empirical evidence for this study show mixed results over the six years analysis. VIII
format	Thesis
qualification_level	Master's degree
author	Jusoh, Fatmawati
author_facet	Jusoh, Fatmawati
author_sort	Jusoh, Fatmawati
title	Nature of losses and the value relevance of earnings and book values : the case of Malaysian companies / Fatmawati Jusoh
title_short	Nature of losses and the value relevance of earnings and book values : the case of Malaysian companies / Fatmawati Jusoh
title_full	Nature of losses and the value relevance of earnings and book values : the case of Malaysian companies / Fatmawati Jusoh
title_fullStr	Nature of losses and the value relevance of earnings and book values : the case of Malaysian companies / Fatmawati Jusoh
title_full_unstemmed	Nature of losses and the value relevance of earnings and book values : the case of Malaysian companies / Fatmawati Jusoh
title_sort	nature of losses and the value relevance of earnings and book values : the case of malaysian companies / fatmawati jusoh
granting_institution	Universiti Teknologi MARA
granting_department	Faculty of Accountancy
publishDate	2005
url	https://ir.uitm.edu.my/id/eprint/3754/1/TM_FATMAWATI%20JUSOH%20AC%2005_5%201.pdf
_version_	1783733104269066240

Nature of losses and the value relevance of earnings and book values : the case of Malaysian companies / Fatmawati Jusoh

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