The Impact of Accounting Earnings Disclosures on Stock Prices in Malaysia: An Emerging Market

This study aims to evaluate the usefulness of accounting earnings disclosures as determinants of share price changes both in sign and magnitude for an emerging market. This thesis attempts to answer the contentious question as to whether the accepted findings in several institutionally more developed capital markets about the value relevance of accounting earnings is applicable to firms traded in more speculative emerging markets. Many studies have identified the different characteristic of these two types of markets. Amongst the more important distinguishing characteristics of emerging and developed capital markets are (a) economic and institutional differences, (b) size-related features, (c) liquidity differences, (d) information availability and (e) the nature of the market's integration within the financial system. The returns-to-earnings relation is based on three postulated links. These are links between the (1) present price and the future dividends, (2) future dividends and the future earnings, and (3) future earnings and the current earnings. These links have been evidenced in many empirical findings reported by researchers on share price valuation, on earnings and dividends relation, on random walk theory of earnings, and many others studies. A pioneer study on the directional sign effect of unexpected earnings on stock returns appeared in 1968, the magnitude effect was first studied in 1979

Timeliness of annual report releases in relation to the direction and magnitude of earnings and share price evaluation : the case of Malaysia

This paper examines the relationship between the timing of earnings announcement and the direction and magnitude of earnings for more than 2482 firm-years in the Bursa Malaysia. The results confirm that CEOs time their earnings announcement based on the direction and magnitude of the unexpected earnings. CEOs announce earnings early for positive unexpected earnings, and delay the announcement for negative unexpected earnings. The market reacts to the timing of the announcement accordingly. These findings are relevant and useful to judge company performance by observing the announcement date of the company, especially those that perform less than satisfactorily in anticipation of bad news release from these firms

Impact of employee training on guests satisfaction: a survey on 5 Star Hotels in Kuala Lumpur

Background: This study extended research on the importance of training and development for customer satisfaction and employee satisfaction by examining its influence on 5 Start Hotels. The survey was based on quantitative method, and 200 questionnaires were collected by using the random sampling method of convenience sampling at 5 Star hotel staffs in Kuala Lumpur. The findings showed that there is relation between employee training and customer satisfaction in five start hotel in Kuala Lumpur. Furthermore, successful training program has relationship to improve / influence employee satisfaction level

The effect of financial risks on the earnings response in Australian Bank Stocks.

Financial institutions are often treated differently from non-financial businesses. Therefore, this paper uses the concept from earnings response literature and extended with the banking risk management measures to find out whether the estimated financial risks have incremental content beyond earnings. This new procedure discovers that Australia investors priced the credit risk, which is measure by the provision for bad and doubtful debts, significantly in the earnings response valuation. This finding suggests the relevant of the credit exposure in the Australia banks using the latest data

Test of intertemporal variability of APT in a volatile economy

The main objective of this study provides test of APT for Tehran stock market and also attempt to find the relevant factors that price the stock returns over time. Tests conducted using the principal component analysis and canonical correlation model showed that at least one to three factors can explain the cross-section of expected returns in this market. In full sample test, the evidence identifies 22 factors in sample and only 13 are priced. Again, in second sub period, there are 24 common factors from the smallest to largest samples and only 15 are priced. This study discovers that the sources of systematic risk are dissimilar due to the different periods in TSE. In full period the sources of risk are export of crude oil and interest rate proxy. In second sub periods money supply (M2), money supply (M1), consumer price index and GDP are sources of risk. So, the so urces of systematic risks in TSE are dissimilar and not quantified. The important macroeconomic variables could be affected by stock returns changes during times. Therefore, it is hard to identify exactly which is the source of risk in TSE

Importance of branding property developers in Malaysia

This paper aims to study the brand consciousness of property purchasers in Malaysia. This study is based on a survey of purchasers in Klang Valley on the brand awareness and the brand personality traits of property developers. 5000 questionnaires were distributed and finally 214 were used for this study. The results show that property purchasers are brand conscious in relation to the property developers and they ranked developers based on the brand personality. Property purchasers look at trend, professionalism and investment as the top 3 priorities in the property brand. The conclusion is that all property firms, designers, real estate agents and stakeholders who?that are involved in property development are to ensure that their products are designed with brand consciousness in mind. The findings in this paper suggest that property designers should pay attention to trend in the property development, property marketers should be professional in dealing with purchasers and the developers should ensure good locations for property investments

Importance of branding for property developers in Malaysia.

This paper aims to study the brand consciousness of property purchasers in Malaysia. This study is based on a survey of purchasers in Klang Valley on the brand awareness and the brand personality traits of property developers. 5000 questionnaires were distributed and finally 214 were used for this study. The results show that property purchasers are brand conscious in relation to the property developers and they ranked developers based on the brand personality. Property purchasers look at trend, professionalism and investment as the top 3 priorities in the property brand. The conclusion is that all property firms, designers, real estate agents and stakeholders who/that are involved in property development are to ensure that their products are designed with brand consciousness in mind. The findings in this paper suggest that property designers should pay attention to trend in the property development, property marketers should be professional in dealing with purchasers and the developers should ensure good locations for property investments

A study of Islamic and conventional banks in Malaysia

Many scholars have researched comparison of conventional and Islamic banking systems, with regards to their performance from time to time. This study compares their respective profitability in terms of volume and volatility of their deposits and loans in Malaysia in a six years period (2006-2011) that other writers have not discussed in detail. The results in this study indicate that there are positive and significant relationships between volume of loans and volume of customers’ deposits and profitability of banks. However, volatility of loans and deposits does not have a significant impact on banks’ profit-efficiency in Malaysia. The results of this research also reveal that Malaysian conventional banks were more profitable than Islamic banks during the period of study. The ROA and ROE are significantly different and mean of ROA and ROE in conventional banks are higher than those in Islamic banks. The main contribution of banks’ profits comes from the spread between the interest earned on loans and the return payable on customer deposits. Both of these are internal factors. Volume of loans and volume of deposits are found to have significant influence on banks’ profitability. Therefore, managers and banks’ administrators should either focus their attention on these two determinants or adopt some kind of policies that will lead banks to increase their volume of loans and deposits to boost banks profitability level

Are Islamic incomes relevance to commercial banks in Malaysia?

A significant price-to-earnings relation is evident in many research findings, which includes study on Malaysia Stock Markets, that the strength, consistency and magnitude of the relation are not as large as those reported in institutionally more developed markets. However, the price adjustment is stronger if price reaction is measured over a long periods, which is consistent to speculative trading. Firm-specific variables such as revenue, firm size and debt-equity have no incremental information content beyond earnings implies that the market monitoring process in an emerging market focuses on earnings only during financial announcement. Therefore, this paper revisited the study on the relevant of accounting earnings by looking at Islamic Income for commercial banks in Malaysia using the earnings response coefficients, which are the earnings-to-share return coefficients that are estimated for sub earnings components by including Islamic banking incomes in the analysis. This paper discovered that though there is a positive effect, the earnings from Islamic banking operation are small. Thus, the total earnings as well as the sub-categories of earnings of banks appear to enter the pricing considerations of investors

Banks' earnings, risks and returns in China

This study aims to find the effect of financial risks, price risks and market risks on the Earning Response Coefficients (ERC) for China Commercial Banks. The research methodologies use the traditional cumulative abnormal returns and the unexpected earning as the main dependent and independent variables. The evidences show that: (1) There is a strong returns-to-earnings relation for banks; (2) The liquidity risk has information content beyond earnings changes in the returns-to-earnings relation. This probably due to the reason that managers of banks find the level of liquidity that fulfilled the need of investors and at the same time earns good profits for the banks