The balance sheet identity model : testing ordinary least square assumptions using Malaysian market / Merani Che Ali

Models based on a relation between market value and book values employing balance sheet variables are used continuously in the accounting research literature. The basic model is well known as The Balance Sheet Identity model as first mentioned by Landsman in 1986. Among other researchers who have...

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Main Author:	Che Ali, Merani
Format:	Thesis
Language:	English
Published:	2002
Subjects:	Periodicals Societies Serials Malaysia
Online Access:	https://ir.uitm.edu.my/id/eprint/3878/1/TM_MERANI%20CHE%20ALI%20AC%2002_5%201.pdf
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id	my-uitm-ir.3878
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spelling	my-uitm-ir.38782016-10-06T06:20:01Z The balance sheet identity model : testing ordinary least square assumptions using Malaysian market / Merani Che Ali 2002 Che Ali, Merani Periodicals. Societies. Serials Malaysia Models based on a relation between market value and book values employing balance sheet variables are used continuously in the accounting research literature. The basic model is well known as The Balance Sheet Identity model as first mentioned by Landsman in 1986. Among other researchers who have based their work on this model are Kane and Unal (1990), Shevlin (1991), Gopalakrishnan and Sugrue (1993), McCarthy and Schneider (1995), Jennings et al (1996) and Pfeiffer (1998). However, all of them were facing several econometric problems when estimating the model. Basically, these problems are related to the procedure for the estimation of the parameters of a population regression line provided by the ordinary least squares (OLS). OLS is based on a number of assumptions about the variables and the error term that must be satisfied in order to ensure the interpretations of the regression estimates are valid. This study empirically examines whether the model using Malaysian data will encounter the same econometric problems. In doing so, we tested five common assumptions namely, normality, serial correlation, linearity, heteroscedasticity and multicollinearity. The empirical results of the test reveal that the models using Malaysian data are facing linearity, normality and heteroscedasticity problems. 2002 Thesis https://ir.uitm.edu.my/id/eprint/3878/ https://ir.uitm.edu.my/id/eprint/3878/1/TM_MERANI%20CHE%20ALI%20AC%2002_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 Malaysia
spellingShingle	Periodicals Societies Serials Malaysia Che Ali, Merani The balance sheet identity model : testing ordinary least square assumptions using Malaysian market / Merani Che Ali
description	Models based on a relation between market value and book values employing balance sheet variables are used continuously in the accounting research literature. The basic model is well known as The Balance Sheet Identity model as first mentioned by Landsman in 1986. Among other researchers who have based their work on this model are Kane and Unal (1990), Shevlin (1991), Gopalakrishnan and Sugrue (1993), McCarthy and Schneider (1995), Jennings et al (1996) and Pfeiffer (1998). However, all of them were facing several econometric problems when estimating the model. Basically, these problems are related to the procedure for the estimation of the parameters of a population regression line provided by the ordinary least squares (OLS). OLS is based on a number of assumptions about the variables and the error term that must be satisfied in order to ensure the interpretations of the regression estimates are valid. This study empirically examines whether the model using Malaysian data will encounter the same econometric problems. In doing so, we tested five common assumptions namely, normality, serial correlation, linearity, heteroscedasticity and multicollinearity. The empirical results of the test reveal that the models using Malaysian data are facing linearity, normality and heteroscedasticity problems.
format	Thesis
qualification_level	Master's degree
author	Che Ali, Merani
author_facet	Che Ali, Merani
author_sort	Che Ali, Merani
title	The balance sheet identity model : testing ordinary least square assumptions using Malaysian market / Merani Che Ali
title_short	The balance sheet identity model : testing ordinary least square assumptions using Malaysian market / Merani Che Ali
title_full	The balance sheet identity model : testing ordinary least square assumptions using Malaysian market / Merani Che Ali
title_fullStr	The balance sheet identity model : testing ordinary least square assumptions using Malaysian market / Merani Che Ali
title_full_unstemmed	The balance sheet identity model : testing ordinary least square assumptions using Malaysian market / Merani Che Ali
title_sort	balance sheet identity model : testing ordinary least square assumptions using malaysian market / merani che ali
granting_institution	Universiti Teknologi MARA
granting_department	Faculty of Accountancy
publishDate	2002
url	https://ir.uitm.edu.my/id/eprint/3878/1/TM_MERANI%20CHE%20ALI%20AC%2002_5%201.pdf
_version_	1783733104993632256

The balance sheet identity model : testing ordinary least square assumptions using Malaysian market / Merani Che Ali

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