The CMAR and extent of compliance with IFRS 101 standard among Malaysian ace market companies
Malaysia is on the track to achieve full convergence and adoption of the International Financial Reporting Standards (IFRSs) by 2012. This study seeks to find out the extent of compliance with IFRS 101 ‘P resentation of Financial Statements’ before the effective date. Using total disclosure...
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| Format: | Article |
| Language: | English |
| Published: |
UUM PRESS
2012-12-01
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| Series: | Journal of Business Management and Accounting |
| Subjects: | |
| Online Access: | https://e-journal.uum.edu.my/index.php/jbma/article/view/8673 |
| Summary: | Malaysia is on the track to achieve full convergence and adoption of the International
Financial Reporting Standards (IFRSs) by 2012. This study seeks to find out the extent
of compliance with IFRS 101 ‘P
resentation of Financial Statements’ before the effective
date. Using total disclosure index (TDI), the findings shows that most of Malaysian Ace
Market companies have complied with IFRS 101. The present study also indicates that
the Cumulative Market Adju
sted Return (CMAR) is positive and significant for both
partial and full compliance of IFRS 101 among the Malaysian Ace Market companies.
Multivariate regression analysis further provides a lack of significant association
between CMAR and announcement of e
arnings (i.e. EPS). Nevertheless, the percentage
of independent directors on the board (BDIND) is found to be a positive and a significant
corporate governance variable that associates with CMAR. These findings imply that
policy makers and regulators shoul
d encourage Ace Market companies to have the
most optimal number of independent board of directors for future improvements of
CMAR |
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| ISSN: | 2231-9298 2636-9249 |