EFFECT OF VOLUNTARY DISCLOSURE ON EARNING RESPONSE CONTROLLING FOR PROFITABILITY, LEVERAGE AND SIZE

Authors

  • Cheng Fan Fah University Putra Mslaysia
  • Tan Suai Huei

DOI:

https://doi.org/10.33736/uraf.288.2016

Abstract

This study aim to investigate the effect of voluntary disclosures on earnings response and company performance in Malaysian listed companies control for profitability, leverage and size.. In the study using disclosure index adopted by Botosan (1997) to measure the scope of voluntary disclosure index; earnings response coefficient (ERC) is measure the regression of abnormal return and unexpected earnings; and company performance such as profitability, leverage and size of company are used in the measurement. The results concluded that voluntary disclosure has positive effect on earning response coefficient (ERC). And the unexpected earnings also have a significant positive effect on earnings response coefficient (ERC). On the other hand, it can explain that expected voluntary disclosure affect to investor reaction.

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Published

2016-08-01

How to Cite

Fah, C. F., & Huei, T. S. (2016). EFFECT OF VOLUNTARY DISCLOSURE ON EARNING RESPONSE CONTROLLING FOR PROFITABILITY, LEVERAGE AND SIZE. UNIMAS Review of Accounting and Finance, 1(1). https://doi.org/10.33736/uraf.288.2016