The Impact of Asian Financial Crisis to Earnings Management and Operating Performance in Malaysia

This study is motivated by the emergence of different trend between Cash from Operations (CFO) and net income reported by companies. The objective of this study is to investigate the relationship between the operating performances of top 100 market firms listed on the Main Board of the Bursa Malaysi...

Full description

Bibliographic Details
Main Authors:	Rosnia, Masruki, Noor Azlinna, Azizan
Format:	Article
Language:	English English
Published:	Medwell Journals 2012
Subjects:	HG Finance
Online Access:	http://umpir.ump.edu.my/id/eprint/6798/ http://umpir.ump.edu.my/id/eprint/6798/ http://umpir.ump.edu.my/id/eprint/6798/ http://umpir.ump.edu.my/id/eprint/6798/1/The_Impact_of_Asian_Financial_Crisis_to_Earnings_Management_and_Operating_Performance_in_Malaysia.pdf http://umpir.ump.edu.my/id/eprint/6798/3/The%20Impact%20of%20Asian%20Financial%20Crisis%20.pdf

id	ump-6798
recordtype	eprints
spelling	ump-67982018-05-02T06:15:17Z http://umpir.ump.edu.my/id/eprint/6798/ The Impact of Asian Financial Crisis to Earnings Management and Operating Performance in Malaysia Rosnia, Masruki Noor Azlinna, Azizan HG Finance This study is motivated by the emergence of different trend between Cash from Operations (CFO) and net income reported by companies. The objective of this study is to investigate the relationship between the operating performances of top 100 market firms listed on the Main Board of the Bursa Malaysia and the behaviour of net income after Asian financial crisis. Initially the sample firms are divided into 10 portfolios based on relative Cash from Operations (CFO) rankings to test if there are systematic differences in CFO across portfolios. A correlation test and a sign-change ratio test are used to study if operating performances and net income are interrelated. The empirical evidence supports the predictions. It suggests that firms from various industries manage earnings when operating performance is poor. The firms tend to choose income-increasing strategies, specifically when the operating performance is extremely poor. In fact, some firms tend to take a big bath whereas some of the exceptionally well performing firms tend to select income-decreasing strategies. Medwell Journals 2012 Article PeerReviewed application/pdf en http://umpir.ump.edu.my/id/eprint/6798/1/The_Impact_of_Asian_Financial_Crisis_to_Earnings_Management_and_Operating_Performance_in_Malaysia.pdf application/pdf en http://umpir.ump.edu.my/id/eprint/6798/3/The%20Impact%20of%20Asian%20Financial%20Crisis%20.pdf Rosnia, Masruki and Noor Azlinna, Azizan (2012) The Impact of Asian Financial Crisis to Earnings Management and Operating Performance in Malaysia. The Social Sciences, 7 (4). pp. 510-516. ISSN 1818-5800 http://medwelljournals.com/abstract/?doi=sscience.2012.510.516 10.3923/sscience.2012.510.516
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Malaysia Pahang
building	UMP Institutional Repository
collection	Online Access
language	English English
topic	HG Finance
spellingShingle	HG Finance Rosnia, Masruki Noor Azlinna, Azizan The Impact of Asian Financial Crisis to Earnings Management and Operating Performance in Malaysia
description	This study is motivated by the emergence of different trend between Cash from Operations (CFO) and net income reported by companies. The objective of this study is to investigate the relationship between the operating performances of top 100 market firms listed on the Main Board of the Bursa Malaysia and the behaviour of net income after Asian financial crisis. Initially the sample firms are divided into 10 portfolios based on relative Cash from Operations (CFO) rankings to test if there are systematic differences in CFO across portfolios. A correlation test and a sign-change ratio test are used to study if operating performances and net income are interrelated. The empirical evidence supports the predictions. It suggests that firms from various industries manage earnings when operating performance is poor. The firms tend to choose income-increasing strategies, specifically when the operating performance is extremely poor. In fact, some firms tend to take a big bath whereas some of the exceptionally well performing firms tend to select income-decreasing strategies.
format	Article
author	Rosnia, Masruki Noor Azlinna, Azizan
author_facet	Rosnia, Masruki Noor Azlinna, Azizan
author_sort	Rosnia, Masruki
title	The Impact of Asian Financial Crisis to Earnings Management and Operating Performance in Malaysia
title_short	The Impact of Asian Financial Crisis to Earnings Management and Operating Performance in Malaysia
title_full	The Impact of Asian Financial Crisis to Earnings Management and Operating Performance in Malaysia
title_fullStr	The Impact of Asian Financial Crisis to Earnings Management and Operating Performance in Malaysia
title_full_unstemmed	The Impact of Asian Financial Crisis to Earnings Management and Operating Performance in Malaysia
title_sort	impact of asian financial crisis to earnings management and operating performance in malaysia
publisher	Medwell Journals
publishDate	2012
url	http://umpir.ump.edu.my/id/eprint/6798/ http://umpir.ump.edu.my/id/eprint/6798/ http://umpir.ump.edu.my/id/eprint/6798/ http://umpir.ump.edu.my/id/eprint/6798/1/The_Impact_of_Asian_Financial_Crisis_to_Earnings_Management_and_Operating_Performance_in_Malaysia.pdf http://umpir.ump.edu.my/id/eprint/6798/3/The%20Impact%20of%20Asian%20Financial%20Crisis%20.pdf
first_indexed	2023-09-18T22:02:53Z
last_indexed	2023-09-18T22:02:53Z
_version_	1777414516031619072

The Impact of Asian Financial Crisis to Earnings Management and Operating Performance in Malaysia

Similar Items