Assessment of accounting information, market value, cost of equity and moderating effect of intellectual capital

It is contended among the accounting researchers that information asymmetry could be reduced through disclosure of information pertaining to quality of earnings and recognition of intellectual capital. Correspondingly, this study examined the relationship between accounting earnings attributes i.e....

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Main Author:	Mehri, Mohammadghorban
Format:	Thesis
Language:	English
Published:	2013
Subjects:	HF5601 Accounting
Online Access:	http://eprints.utm.my/id/eprint/33766/5/MohammadGhorbanPFPPSM2013.pdf
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id	my-utm-ep.33766
record_format	uketd_dc
spelling	my-utm-ep.337662017-07-23T04:08:24Z Assessment of accounting information, market value, cost of equity and moderating effect of intellectual capital 2013-03 Mehri, Mohammadghorban HF5601 Accounting It is contended among the accounting researchers that information asymmetry could be reduced through disclosure of information pertaining to quality of earnings and recognition of intellectual capital. Correspondingly, this study examined the relationship between accounting earnings attributes i.e. relevance and conservatism of earnings and cost of equity. This study included an investigation of the moderating effect of intellectual capital on (i) the relationship between earnings and book value (individually and aggregate) and market price, and (ii) the relevance of earnings and cost of equity. The data for the study were based on annual financial reports, Datastream and Bloomberg of firms from the Technology, Trading and Services, Consumer Products and Hotel sectors listed in the main board of Bursa Malaysia from 2006 to 2010. The study employed multiple and moderated multiple regression to analyse data. The results showed that, firstly, firms with high quality of relevance of earnings benefit more from lower cost of equity and there is no relationship between conservatism of earnings and cost of equity, Secondly, the moderating of intellectual capital has an effect on the relationship between earnings and book value with market price. Lastly, the findings showed that intellectual capital has a moderating effect on relevance of earnings and cost of equity. This study contributes to the valuation theory through extension of Ohlson model by the inclusion of new-knowledge of intellectual capital. Besides that, it contributes to the understanding of signaling theory through the explanation of the moderating effect of intellectual capital on the relationship between relevance of earnings and cost of equity. The findings of the study has shown the importance of intellectual capital and it is recommended that accounting standard setting authorities must pave the avenue for the disclosure of intellectual capital in a firm?s annual financial report. 2013-03 Thesis http://eprints.utm.my/id/eprint/33766/ http://eprints.utm.my/id/eprint/33766/5/MohammadGhorbanPFPPSM2013.pdf application/pdf en public phd doctoral Universiti Teknologi Malaysia, Faculty of Management Faculty of Management
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	HF5601 Accounting
spellingShingle	HF5601 Accounting Mehri, Mohammadghorban Assessment of accounting information, market value, cost of equity and moderating effect of intellectual capital
description	It is contended among the accounting researchers that information asymmetry could be reduced through disclosure of information pertaining to quality of earnings and recognition of intellectual capital. Correspondingly, this study examined the relationship between accounting earnings attributes i.e. relevance and conservatism of earnings and cost of equity. This study included an investigation of the moderating effect of intellectual capital on (i) the relationship between earnings and book value (individually and aggregate) and market price, and (ii) the relevance of earnings and cost of equity. The data for the study were based on annual financial reports, Datastream and Bloomberg of firms from the Technology, Trading and Services, Consumer Products and Hotel sectors listed in the main board of Bursa Malaysia from 2006 to 2010. The study employed multiple and moderated multiple regression to analyse data. The results showed that, firstly, firms with high quality of relevance of earnings benefit more from lower cost of equity and there is no relationship between conservatism of earnings and cost of equity, Secondly, the moderating of intellectual capital has an effect on the relationship between earnings and book value with market price. Lastly, the findings showed that intellectual capital has a moderating effect on relevance of earnings and cost of equity. This study contributes to the valuation theory through extension of Ohlson model by the inclusion of new-knowledge of intellectual capital. Besides that, it contributes to the understanding of signaling theory through the explanation of the moderating effect of intellectual capital on the relationship between relevance of earnings and cost of equity. The findings of the study has shown the importance of intellectual capital and it is recommended that accounting standard setting authorities must pave the avenue for the disclosure of intellectual capital in a firm?s annual financial report.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Mehri, Mohammadghorban
author_facet	Mehri, Mohammadghorban
author_sort	Mehri, Mohammadghorban
title	Assessment of accounting information, market value, cost of equity and moderating effect of intellectual capital
title_short	Assessment of accounting information, market value, cost of equity and moderating effect of intellectual capital
title_full	Assessment of accounting information, market value, cost of equity and moderating effect of intellectual capital
title_fullStr	Assessment of accounting information, market value, cost of equity and moderating effect of intellectual capital
title_full_unstemmed	Assessment of accounting information, market value, cost of equity and moderating effect of intellectual capital
title_sort	assessment of accounting information, market value, cost of equity and moderating effect of intellectual capital
granting_institution	Universiti Teknologi Malaysia, Faculty of Management
granting_department	Faculty of Management
publishDate	2013
url	http://eprints.utm.my/id/eprint/33766/5/MohammadGhorbanPFPPSM2013.pdf
_version_	1747816179884359680

Assessment of accounting information, market value, cost of equity and moderating effect of intellectual capital

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