The Informativeness of Comprehensive Income in Malaysia: A Test of CSR and DSR Conventions (Published)
This exploratory study is motivated by the continuing debate on the pre-eminence of the clean surplus relation (CSR) comprehensive accounting information over the firm earnings reported under the notion of dirty surplus relation (DSR). The level of informativeness of the accounting earnings reported in the income statement (based on DSR convention) of listed firms in Malaysia and the all-inclusive comprehensive income extrapolated from the same annual reports is analysed. The value relevance tests on the income performance metrics established from these two distinctive accounting conventions are conducted using 323 (317) sample firms with continuous market and accounting data of 15 (14) years reveal that stock prices are more responsive to accounting earnings measured on DSR income concept as compared to the CSR counterpart. These findings imply that comprehensive accounting information established under the notion of clean surplus relation is not as effective in conveying value-relevant information to stakeholders.
IFRS ADOPTION AND ACCOUNTING QUALITY OF QUOTED MANUFACTURING FIRMS IN NIGERIA: A CROSS SECTIONAL STUDY OF BREWERY AND CEMENT MANUFACTURING FIRMS (Published)
This paper investigates the differences in the quality of accounting information Pre and post IFRS adoption by manufacturing firms in Nigeria over a five year period. Multiple regression analysis was performed on accounting quality variables and t-test was carried out for equality of mean to compare pre and post IFRS. Results indicate a decline in accounting quality using earnings management, value relevance, and timely loss recognition as independent variables. Earnings and book value of equity are less value relevant and timely loss recognition is less in post-IFRS compared to pre-IFRS period