Pension accounting disclosures: Actuarial gains and losses and market price reactions

This paper seeks to investigate the market price reactions towards actuarial gains and losses (AGL) disclosure and the determinants of Cumulative Average Abnormal Return (CAAR) by using Cumulative Market Adjusted Return Model (CMAR) and efficient market theory among 86 company-years in Malaysia that...

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Main Author:	Nora Fauzana, Zainal
Format:	Thesis
Language:	eng eng
Published:	2016
Subjects:	HF5601-5689 Accounting
Online Access:	https://etd.uum.edu.my/6156/1/s817474_01.pdf https://etd.uum.edu.my/6156/2/s817474_02.pdf
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id	my-uum-etd.6156
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Lode, Nor Asma
topic	HF5601-5689 Accounting
spellingShingle	HF5601-5689 Accounting Nora Fauzana, Zainal Pension accounting disclosures: Actuarial gains and losses and market price reactions
description	This paper seeks to investigate the market price reactions towards actuarial gains and losses (AGL) disclosure and the determinants of Cumulative Average Abnormal Return (CAAR) by using Cumulative Market Adjusted Return Model (CMAR) and efficient market theory among 86 company-years in Malaysia that has disclosed AGL in annual report for the year 2012 until 2014. The finding shows that there is a negative reaction of CAAR before the financial year ended of AGL disclosure as the information has been spread before the financial year ended. However, the positive market price reaction on and after the financial year ended indicates that the announcement is most welcomed by the investors. Besides, the actuarial losses (AL) are more likely to have significant market price reaction as compared to actuarial gains (AG). It indicates that the investor and shareholder of the company may react immediately towards AL disclosure rather than AG and maybe the investors seem to be conservatism in making their investment decisions. In addition, the study found significant negative relationship between CAAR and AGL disclosures. This finding indicates that investors are more looking for AL disclosures rather than AG disclosures where the actuarial losses disclosures give significant negative market price reactions.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Nora Fauzana, Zainal
author_facet	Nora Fauzana, Zainal
author_sort	Nora Fauzana, Zainal
title	Pension accounting disclosures: Actuarial gains and losses and market price reactions
title_short	Pension accounting disclosures: Actuarial gains and losses and market price reactions
title_full	Pension accounting disclosures: Actuarial gains and losses and market price reactions
title_fullStr	Pension accounting disclosures: Actuarial gains and losses and market price reactions
title_full_unstemmed	Pension accounting disclosures: Actuarial gains and losses and market price reactions
title_sort	pension accounting disclosures: actuarial gains and losses and market price reactions
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2016
url	https://etd.uum.edu.my/6156/1/s817474_01.pdf https://etd.uum.edu.my/6156/2/s817474_02.pdf
_version_	1747828029693886464
spelling	my-uum-etd.61562021-04-19T03:01:16Z Pension accounting disclosures: Actuarial gains and losses and market price reactions 2016 Nora Fauzana, Zainal Lode, Nor Asma Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HF5601-5689 Accounting This paper seeks to investigate the market price reactions towards actuarial gains and losses (AGL) disclosure and the determinants of Cumulative Average Abnormal Return (CAAR) by using Cumulative Market Adjusted Return Model (CMAR) and efficient market theory among 86 company-years in Malaysia that has disclosed AGL in annual report for the year 2012 until 2014. The finding shows that there is a negative reaction of CAAR before the financial year ended of AGL disclosure as the information has been spread before the financial year ended. However, the positive market price reaction on and after the financial year ended indicates that the announcement is most welcomed by the investors. Besides, the actuarial losses (AL) are more likely to have significant market price reaction as compared to actuarial gains (AG). It indicates that the investor and shareholder of the company may react immediately towards AL disclosure rather than AG and maybe the investors seem to be conservatism in making their investment decisions. In addition, the study found significant negative relationship between CAAR and AGL disclosures. This finding indicates that investors are more looking for AL disclosures rather than AG disclosures where the actuarial losses disclosures give significant negative market price reactions. 2016 Thesis https://etd.uum.edu.my/6156/ https://etd.uum.edu.my/6156/1/s817474_01.pdf text eng public https://etd.uum.edu.my/6156/2/s817474_02.pdf text eng public masters masters Universiti Utara Malaysia Alexander, D., Britton, A. & Jorissen, A. (2005), International financial reporting and analysis (2nd ed.), London: Thomson Learning. 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Pension accounting disclosures: Actuarial gains and losses and market price reactions

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