Moderating effect of audit quality: The case of dividend and firm value in Malaysian firms
This paper aimed to examine the effect of dividend on firm value, as well as the impact of audit quality on the relationship between dividend and firm value in Malaysian firms, which was measured via financial statements audited by four large-sized audit firms (henceforth the Big Four). The model pr...
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| Format: | Article |
| Language: | English English |
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Taylor & Francis
2021
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| Online Access: | https://eprints.ums.edu.my/id/eprint/32910/1/Moderating%20effect%20of%20audit%20quality.pdf https://eprints.ums.edu.my/id/eprint/32910/2/Moderating%20effect%20of%20audit%20quality1.pdf |
| _version_ | 1825714781883990016 |
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| author | Mohd Ashari Bakri |
| author_facet | Mohd Ashari Bakri |
| author_sort | Mohd Ashari Bakri |
| collection | UMS |
| description | This paper aimed to examine the effect of dividend on firm value, as well as the impact of audit quality on the relationship between dividend and firm value in Malaysian firms, which was measured via financial statements audited by four large-sized audit firms (henceforth the Big Four). The model projected was assessed by using Pooled Ordinary Least Square (OLS), panel random, and fixed effect regression. To ensure robust results, firm fixed effect were also employed. The results revealed that dividends negatively affected firm value, whereas audit quality moderated the relationship between the variables. The outcomes were robust even in further consideration of endogeneity concerns, specifically the omitted variable bias and reverse causality (i.e. firm fixed effect and Generalized Method of Moments (GMM)). The study findings provide novel information applicable for managers to devise investment strategies in the Malaysian market. The implication from this finding can be very useful for a manager to devise their strategy, especially by looking into the moderating effect of audit quality in mitigating information asymmetry that surrounds within dividend and firm value relationship. To the author’s knowledge, this paper contributes significantly towards dividend and firm value literature by being the pioneering introduction into the moderating effect of audit quality, especially in the context of emerging markets. |
| first_indexed | 2024-03-06T03:16:54Z |
| format | Article |
| id | ums.eprints-32910 |
| institution | Universiti Malaysia Sabah |
| language | English English |
| last_indexed | 2024-03-06T03:16:54Z |
| publishDate | 2021 |
| publisher | Taylor & Francis |
| record_format | dspace |
| spelling | ums.eprints-329102022-06-21T02:34:42Z https://eprints.ums.edu.my/id/eprint/32910/ Moderating effect of audit quality: The case of dividend and firm value in Malaysian firms Mohd Ashari Bakri HG1-9999 Finance This paper aimed to examine the effect of dividend on firm value, as well as the impact of audit quality on the relationship between dividend and firm value in Malaysian firms, which was measured via financial statements audited by four large-sized audit firms (henceforth the Big Four). The model projected was assessed by using Pooled Ordinary Least Square (OLS), panel random, and fixed effect regression. To ensure robust results, firm fixed effect were also employed. The results revealed that dividends negatively affected firm value, whereas audit quality moderated the relationship between the variables. The outcomes were robust even in further consideration of endogeneity concerns, specifically the omitted variable bias and reverse causality (i.e. firm fixed effect and Generalized Method of Moments (GMM)). The study findings provide novel information applicable for managers to devise investment strategies in the Malaysian market. The implication from this finding can be very useful for a manager to devise their strategy, especially by looking into the moderating effect of audit quality in mitigating information asymmetry that surrounds within dividend and firm value relationship. To the author’s knowledge, this paper contributes significantly towards dividend and firm value literature by being the pioneering introduction into the moderating effect of audit quality, especially in the context of emerging markets. Taylor & Francis 2021 Article PeerReviewed text en https://eprints.ums.edu.my/id/eprint/32910/1/Moderating%20effect%20of%20audit%20quality.pdf text en https://eprints.ums.edu.my/id/eprint/32910/2/Moderating%20effect%20of%20audit%20quality1.pdf Mohd Ashari Bakri (2021) Moderating effect of audit quality: The case of dividend and firm value in Malaysian firms. Cogent Business and Management, 8. pp. 1-15. ISSN 2331-1975 https://www.tandfonline.com/doi/full/10.1080/23311975.2021.2004807 |
| spellingShingle | HG1-9999 Finance Mohd Ashari Bakri Moderating effect of audit quality: The case of dividend and firm value in Malaysian firms |
| title | Moderating effect of audit quality: The case of dividend and firm value in Malaysian firms |
| title_full | Moderating effect of audit quality: The case of dividend and firm value in Malaysian firms |
| title_fullStr | Moderating effect of audit quality: The case of dividend and firm value in Malaysian firms |
| title_full_unstemmed | Moderating effect of audit quality: The case of dividend and firm value in Malaysian firms |
| title_short | Moderating effect of audit quality: The case of dividend and firm value in Malaysian firms |
| title_sort | moderating effect of audit quality the case of dividend and firm value in malaysian firms |
| topic | HG1-9999 Finance |
| url | https://eprints.ums.edu.my/id/eprint/32910/1/Moderating%20effect%20of%20audit%20quality.pdf https://eprints.ums.edu.my/id/eprint/32910/2/Moderating%20effect%20of%20audit%20quality1.pdf |
| work_keys_str_mv | AT mohdasharibakri moderatingeffectofauditqualitythecaseofdividendandfirmvalueinmalaysianfirms |