Accounting and value based determinants of Malaysian companies’ stock performance

Evaluating the performance of a company is vital to ensure optimal allocation of its limited resources. To achieve this objective, accounting performance measures have been developed. These measures are often criticized for not including the company’s capital cost and they could be manipulated. Base...

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主要作者:	Nakhaei, Habibollah
格式:	Thesis
语言:	English
出版:	2014
主题:	HD28 Management Industrial Management
在线阅读:	http://eprints.utm.my/id/eprint/77658/1/HabibollahNakhaeiPFM2014.pdf
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id	my-utm-ep.77658
record_format	uketd_dc
spelling	my-utm-ep.776582018-06-26T07:49:54Z Accounting and value based determinants of Malaysian companies’ stock performance 2014-10 Nakhaei, Habibollah HD28 Management. Industrial Management Evaluating the performance of a company is vital to ensure optimal allocation of its limited resources. To achieve this objective, accounting performance measures have been developed. These measures are often criticized for not including the company’s capital cost and they could be manipulated. Based on literature reviewed, studies on the relationship between value-based measures and accounting measures with stock return are limited and there are contradictions among the existing results. Moreover, there are only a few studies on value-based measures in Asian countries, especially in Malaysia. EVA Momentum (EVAM) as the newest value based measure has not been empirically examined in public listed companies. Therefore, this research is the first Malaysian case in this area whereby an integrative model was developed to examine the relative information content (RIC) and incremental information content (IIC) between value based and accounting measures with stock return. The value based measures are economic value added (EVA), refined economic value added (REVA), EVAM, and market value added (MVA) whereas the accounting measures included net income (NI), net operational profit after tax (NOPAT), earnings per share (EPS), return on assets (ROA), return on equity (ROE), and return on sales (ROS). In addition, this study evaluated the RIC of the internal accounting and value based measures with MVA. Census method was applied to obtain data from non-financial public companies listed in the main market of Bursa Malaysia from the year 2002-2011. The historical financial data were analysed using E-Views 7 software. The RIC tests revealed that the value based measures including EVA, REVA, EVAM, and MVA, were not able to outperform accounting measures namely NI, NOPAT, EPS, ROA, ROE, and ROS, in their relationship with stock returns. Furthermore, the RIC test of internal measures and MVA indicated that internal value based measures involving EVA and REVA with the exception of EVAM outperformed accounting measures in their association with MVA, and their level was generally low. In addition, the IIC test illustrated that all value based measures jointly have IIC with stock return when compared to accounting measures. However, the accounting measures have more IIC with stock return when compared to value based measures. Finally, the IIC test showed that EVAM does not have IIC when compared to other value based measures, but NI has more IIC when compared to other accounting measures. The developed integrative model will serve as a guide on how to use value based measures involving EVA, REVA, and MVA with accounting measures for Malaysian companies in their annual reports. 2014-10 Thesis http://eprints.utm.my/id/eprint/77658/ http://eprints.utm.my/id/eprint/77658/1/HabibollahNakhaeiPFM2014.pdf application/pdf en public http://dms.library.utm.my:8080/vital/access/manager/Repository/vital:98464 phd doctoral Universiti Teknologi Malaysia, Faculty of Management Faculty of Management
institution	Universiti Teknologi Malaysia
collection	UTM Institutional Repository
language	English
topic	HD28 Management Industrial Management
spellingShingle	HD28 Management Industrial Management Nakhaei, Habibollah Accounting and value based determinants of Malaysian companies’ stock performance
description	Evaluating the performance of a company is vital to ensure optimal allocation of its limited resources. To achieve this objective, accounting performance measures have been developed. These measures are often criticized for not including the company’s capital cost and they could be manipulated. Based on literature reviewed, studies on the relationship between value-based measures and accounting measures with stock return are limited and there are contradictions among the existing results. Moreover, there are only a few studies on value-based measures in Asian countries, especially in Malaysia. EVA Momentum (EVAM) as the newest value based measure has not been empirically examined in public listed companies. Therefore, this research is the first Malaysian case in this area whereby an integrative model was developed to examine the relative information content (RIC) and incremental information content (IIC) between value based and accounting measures with stock return. The value based measures are economic value added (EVA), refined economic value added (REVA), EVAM, and market value added (MVA) whereas the accounting measures included net income (NI), net operational profit after tax (NOPAT), earnings per share (EPS), return on assets (ROA), return on equity (ROE), and return on sales (ROS). In addition, this study evaluated the RIC of the internal accounting and value based measures with MVA. Census method was applied to obtain data from non-financial public companies listed in the main market of Bursa Malaysia from the year 2002-2011. The historical financial data were analysed using E-Views 7 software. The RIC tests revealed that the value based measures including EVA, REVA, EVAM, and MVA, were not able to outperform accounting measures namely NI, NOPAT, EPS, ROA, ROE, and ROS, in their relationship with stock returns. Furthermore, the RIC test of internal measures and MVA indicated that internal value based measures involving EVA and REVA with the exception of EVAM outperformed accounting measures in their association with MVA, and their level was generally low. In addition, the IIC test illustrated that all value based measures jointly have IIC with stock return when compared to accounting measures. However, the accounting measures have more IIC with stock return when compared to value based measures. Finally, the IIC test showed that EVAM does not have IIC when compared to other value based measures, but NI has more IIC when compared to other accounting measures. The developed integrative model will serve as a guide on how to use value based measures involving EVA, REVA, and MVA with accounting measures for Malaysian companies in their annual reports.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Nakhaei, Habibollah
author_facet	Nakhaei, Habibollah
author_sort	Nakhaei, Habibollah
title	Accounting and value based determinants of Malaysian companies’ stock performance
title_short	Accounting and value based determinants of Malaysian companies’ stock performance
title_full	Accounting and value based determinants of Malaysian companies’ stock performance
title_fullStr	Accounting and value based determinants of Malaysian companies’ stock performance
title_full_unstemmed	Accounting and value based determinants of Malaysian companies’ stock performance
title_sort	accounting and value based determinants of malaysian companies’ stock performance
granting_institution	Universiti Teknologi Malaysia, Faculty of Management
granting_department	Faculty of Management
publishDate	2014
url	http://eprints.utm.my/id/eprint/77658/1/HabibollahNakhaeiPFM2014.pdf
_version_	1747817801060450304

Accounting and value based determinants of Malaysian companies’ stock performance

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