Earnings Quality Attributes and Performance of Malaysian Public Listed Firms

Mahmud, Radziah; Ibrahim, Muhd Kamil; Pok, Wee Ching

doi:10.2139/ssrn.1460309

Cited by 7 publications

(14 citation statements)

References 54 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The mediating role of earnings quality in the relationship between corporate reputation and corporate performance was also discussed and statistically justified. The results offer statistical evidence on the linkage between earnings quality and corporate performance in the whole picture at different points of corporate performance"s conditional distribution, which has been missed in previous research (Lee et al, 2006;Mahmud et al, 2009;Gaio and Raposo, 2011;Madhumathi and Ranganatham, 2011). The effect of earnings quality and corporate performance is contingent on corporate performance"s conditional distribution.…”

Section: Discussionmentioning

confidence: 65%

“…The linkages among earnings quality, corporate reputation and corporate performance are not only causal relationships, but they are also more complicated ones. The quality of earnings reports is suggested by prior research (Lee et al, 2006;Mahmud et al, 2009;Gaio and Raposo, 2011;Madhumathi and Ranganatham, 2011) as an important factor bringing about improved corporate performance. Lee et al (2006) suggest that a company managers manipulate earnings will often enable their companies to bear a higher business cost and so companies with higher earnings quality tend to gain higher performance.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Lee et al (2006) suggest that a company managers manipulate earnings will often enable their companies to bear a higher business cost and so companies with higher earnings quality tend to gain higher performance. Likewise, Mahmud et al (2009) try to address the question whether earnings quality is related to corporate performance. Their findings indicate that the quality of earnings puts positive effect on corporate performance.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Gatzert (2015) offers a comprehensive study of empirical evidence concerning the link between corporate reputation and firm performance, while Li and Zhou (2015) explore the correlation between organizational reputation and enterprise development and document that, organizations with high reputation likely achieve superior performance. On the one hand, the reputation of a company is supposed by prior research (Roberts and Dowling, 2002;IwuEgwuonwu, 2011;Lee and Roh, 2012) as a vital driver leading to enhanced corporate performance; on the other hand, it is also proposed to affect the company"s quality of earnings statements, which in turn also creates competitive advantages and so helps the company gain superior performance (Lee et al, 2006;Tan, 2008;Luchs et al, 2009;Mahmud et al, 2009;Gaio and Raposo, 2011;Madhumathi and Ranganatham, 2011;Cao et al, 2012).…”

Section: Literature Reviewmentioning

confidence: 99%

See 3 more Smart Citations

Earnings Quality with Reputation and Performance

Huynh

2018

Asian Economic and Financial Review

View full text Add to dashboard Cite

Article History JEL Classification:C51, G39, L25, M41.The quality of earnings is a potential driver of profit growth. However, it is regarded as a consequence of corporate reputation. Earnings quality is also suggested as a mediator intervening in the association between corporate reputation and corporate performance. This research employs the quantile regression to investigate the linkage between earnings quality and corporate performance. Then, it uses an indirect technique to analyze the mediating effect of earnings quality on the relationship between corporate reputation and corporate performance. The results provide statistical evidence on the comprehensive relationships among earnings quality, corporate reputation and corporate performance. The relationship between earnings quality and corporate performance is statistically supported in a more overall picture at different levels of corporate performance. Furthermore, this research offers statistical evidence on the mediating role of earnings quality in the impact of corporate reputation on corporate performance. The findings are expected to provide business managers with an insight into the complex links among earnings quality, corporate reputation and corporate performance, which will facilitate their decisions on the delivery level of good financial reports as well as on the maintenance of their corporate reputation to the extent that their company can obtain superior improved performance. Contribution/ Originality:This study contributes to the existing literature by providing statistical evidence on the mediating role of earnings quality in the effect of corporate reputation on corporate performance and it is the first to use the quantile regression to investigate the different effects of earnings quality on corporate performance. RESEARCH BACKGROUND AND PURPOSESeveral financial scandals, such as the major scandals of Enron and WorldCom, direct the attention of investors, researchers and also those concerned to the quality of financial information as well as the quality of reported earnings. Studies have begun to investigate the factors related to earnings quality released by publicly listed companies. Earnings quality is reported by previous researchers as being greatly essential to financial information users, practitioners and regulators as well as accounting researchers, because the earnings of companies are generally supposed to be an important information component offered in financial statements (Lev, 1989; Boonlert-U-Thai et al., 2006). If earnings quality is too low, users of financial statements can suffer negative effects, since poor earnings quality may enable investors to misallocate their money; therefore, they can obtain improper

show abstract

Section: Discussionmentioning

confidence: 65%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

See 2 more Smart Citations

Earnings Quality with Reputation and Performance

Huynh

2018

Asian Economic and Financial Review

View full text Add to dashboard Cite

show abstract

“…En países emergentes no ha ocurrido lo mismo, las investigaciones en contabilidad financiera se han focalizado en diversos temas, tales como los modelos de predicción de insolvencia, el retorno de las acciones y calidad de la información contable (v.g. Sandin y Porporato, 2007;Swanson, Rees y Juarez-Valdes, 2003;Mahmud, Ibrahim y Pok, 2009). Pero, con respecto a los modelos de predicción de la rentabilidad futura la bibliografía muestra que no ha existido un mayor interés.…”

Section: Introductionunclassified

Capacidad predictiva de la rentabilidad en empresas del mercado de capitales de Argentina

Terreno

Sattler

González

2018

CyA

View full text Add to dashboard Cite

<p>Farfield y Yohn (2001) presentan un sencillo e interesante modelo a efectos de predecir la rentabilidad en el corto plazo, en base a la rentabilidad actual y los componentes de Dupont. No obstante, la importancia y difusión de dicho modelo no ha sido explorado en economías emergentes. Es por ello, que en el presente trabajo se plantea como objetivo evaluar la capacidad predictiva de la rentabilidad de los activos operativos netos, en base al modelo mencionado en el Mercado de Capitales de Argentina. Los modelos contrastados muestran un importante proceso de reversión a la media de rentabilidad y que solamente la rotación de los activos operativos netos permite la mejoría en la rentabilidad del año siguiente. En cambio, el aumento del margen de ganancias revierte rápidamente, determinando un efecto negativo sobre rentabilidad del año siguiente.</p>

show abstract

Earnings Quality Attributes and Investment Opportunities for Latin American Firms

Carvalho

Camargo²,

Kalatzis³

2017

ASAA Journal

View full text Add to dashboard Cite

This work verifies if companies with better accounting information show better performance and investigates the impact of better accounting information on the financial constraints. This study is based on an unbalanced panel data of 596 firms from seven Latin American countries between 1989 and 2009. The return on equity (ROE) and Market to book (MB) variables are used to define the firms' performance, which are regressed against five models that consider the quality of accounting information. We also investigate the relationship between financial constraint, measured by the KZ index, and accounting quality. The results support the view that earnings quality is an important factor to explain market and operational performance and aspects related to efficiency are important to determine the operational performance, but are not significant when market performance of Latin American firms are analyzed. When we model the firm's investment, the quality of accounting information appears to be a useful proxy to financial constraint. Moreover, the accounting quality plays a positive effect on investment that is a much more positive for unconstraint firms.

show abstract

Earnings Quality Attributes and Performance of Malaysian Public Listed Firms

Cited by 7 publications

References 54 publications

Earnings Quality with Reputation and Performance

Earnings Quality with Reputation and Performance

Capacidad predictiva de la rentabilidad en empresas del mercado de capitales de Argentina

Earnings Quality Attributes and Investment Opportunities for Latin American Firms

Contact Info

Product

Resources

About