Audit size and earnings value relevance in Malaysia
We examine the difference in audit quality between Big 4 audit firms and non-Big 4 audit firms, whereby we us earnings value relevance as a proxy for audit quality. Our sample is non-financial firms listed on Bursa Malaysia. Based on 4, 127 firm-year observations over the period 2003-2012, we find t...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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International Information Institute
2016
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/19733/1/I%2019%207%28A%29%202016%202655%202659.pdf |
| _version_ | 1825804243162890240 |
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| author | Abdul Manaf, Kamarul Bahrain Amran, Noor Afza Ishak, Rokiah |
| author_facet | Abdul Manaf, Kamarul Bahrain Amran, Noor Afza Ishak, Rokiah |
| author_sort | Abdul Manaf, Kamarul Bahrain |
| collection | UUM |
| description | We examine the difference in audit quality between Big 4 audit firms and non-Big 4 audit firms, whereby we us earnings value relevance as a proxy for audit quality. Our sample is non-financial firms listed on Bursa Malaysia. Based on 4, 127 firm-year observations over the period 2003-2012, we find that earnings of firms audited by Big 4 audit firms are more value relevant that earnings of firms audited by non-Big 4 audit firms.This is evidenced by higher regression coefficient on earnings and coefficient of determination, the adjusted R2, for firms audited by Big 4 audit firms. Our results indicate that audit is of higher quality for Big 4 audit firms. |
| first_indexed | 2024-07-04T06:11:14Z |
| format | Article |
| id | uum-19733 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:11:14Z |
| publishDate | 2016 |
| publisher | International Information Institute |
| record_format | eprints |
| spelling | uum-197332016-11-16T06:11:37Z https://repo.uum.edu.my/id/eprint/19733/ Audit size and earnings value relevance in Malaysia Abdul Manaf, Kamarul Bahrain Amran, Noor Afza Ishak, Rokiah HF5601 Accounting We examine the difference in audit quality between Big 4 audit firms and non-Big 4 audit firms, whereby we us earnings value relevance as a proxy for audit quality. Our sample is non-financial firms listed on Bursa Malaysia. Based on 4, 127 firm-year observations over the period 2003-2012, we find that earnings of firms audited by Big 4 audit firms are more value relevant that earnings of firms audited by non-Big 4 audit firms.This is evidenced by higher regression coefficient on earnings and coefficient of determination, the adjusted R2, for firms audited by Big 4 audit firms. Our results indicate that audit is of higher quality for Big 4 audit firms. International Information Institute 2016 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/19733/1/I%2019%207%28A%29%202016%202655%202659.pdf Abdul Manaf, Kamarul Bahrain and Amran, Noor Afza and Ishak, Rokiah (2016) Audit size and earnings value relevance in Malaysia. Information, 19 (7(A)). pp. 2655-2659. ISSN 1343-4500 http://www.information-iii.org/abs_e2.html |
| spellingShingle | HF5601 Accounting Abdul Manaf, Kamarul Bahrain Amran, Noor Afza Ishak, Rokiah Audit size and earnings value relevance in Malaysia |
| title | Audit size and earnings value relevance in Malaysia |
| title_full | Audit size and earnings value relevance in Malaysia |
| title_fullStr | Audit size and earnings value relevance in Malaysia |
| title_full_unstemmed | Audit size and earnings value relevance in Malaysia |
| title_short | Audit size and earnings value relevance in Malaysia |
| title_sort | audit size and earnings value relevance in malaysia |
| topic | HF5601 Accounting |
| url | https://repo.uum.edu.my/id/eprint/19733/1/I%2019%207%28A%29%202016%202655%202659.pdf |
| work_keys_str_mv | AT abdulmanafkamarulbahrain auditsizeandearningsvaluerelevanceinmalaysia AT amrannoorafza auditsizeandearningsvaluerelevanceinmalaysia AT ishakrokiah auditsizeandearningsvaluerelevanceinmalaysia |