Market Value and Balance Sheet Numbers: Evidence from Malaysia

Muhd Kamil Ibrahim (MARA University of Technology, Malaysia)
Raudah Danila (North University of Malaysia)
Haslinda Yusoff (MARA University of Technology, Malaysia)
Normahiran Yatim (MARA University of Technology, Malaysia)

Asian Review of Accounting

ISSN: 1321-7348

Publication date: 1 January 2002


This study examines whether investors take into consideration the balance sheet numbers when determining the market value of companies. Specifically, an investigation is made of the association between the book value of equity and the value placed on the firm by the stock market. An equity valuation model first mentioned by Landsman (1986), based on the balance sheet identity, is used to permit assets and liabilities to have separate empirical coefficient values. In scope, the study covers Malaysian main board companies from years 1990 to 1997. Evidence is provided which is consistent with the notion that the market incorporates information on accounting numbers in the valuation of a firm. As a general conclusion, the results indicate that investors do use information in the balance sheet.


Kamil Ibrahim, M., Danila, R., Yusoff, H. and Yatim, N. (2002), "Market Value and Balance Sheet Numbers: Evidence from Malaysia", Asian Review of Accounting, Vol. 10 No. 1, pp. 77-88.

Download as .RIS




Copyright © 2002, MCB UP Limited

To read the full version of this content please select one of the options below

You may be able to access this content by logging in via Shibboleth, Open Athens or with your Emerald account.
To rent this content from Deepdyve, please click the button.
If you think you should have access to this content, click the button to contact our support team.