Authors : Mazurina Mohd Ali, Syarifah Saffa` Najwa Tuan Besar and Nor Azam Mastuki
Abstract: The purpose of this study is to examine whether the market perceives financial restatements as an important factor when it determines the value of the company. The sample comprises of 250 public listed companies on the Main Board or the Second Board of Bursa Malaysia for the years between 2005 and 2015. A multivariate regression analysis is used by employing the Ohlson’s valuation model and it is based on the methodology developed by Davis-Friday, Eng and Liu. The study finds no significant relationship between financial restatement and firm value. However, the results highlight that the equity book value and earnings reported in the financial statement is value-relevant for investors in assessing Malaysian firm’s value.
Mazurina Mohd Ali, Syarifah Saffa` Najwa Tuan Besar and Nor Azam Mastuki, 2018. Value Relevance of Financial Restatements: Malaysian Perspective. Journal of Engineering and Applied Sciences, 13: 804-808.