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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Autor principal:	Mohd Ashari Bakri
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2021
Materias:	audit quality big four dividend firm value signalling theory information asymmetry Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/712e32c401a140b1bea586577dbe0d0c
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spelling	oai:doaj.org-article:712e32c401a140b1bea586577dbe0d0c2021-11-26T11:19:50ZModerating effect of audit quality: The case of dividend and firm value in Malaysian firms2331-197510.1080/23311975.2021.2004807https://doaj.org/article/712e32c401a140b1bea586577dbe0d0c2021-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2021.2004807https://doaj.org/toc/2331-1975This 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.Mohd Ashari BakriTaylor & Francis Grouparticleaudit qualitybig fourdividendfirm valuesignalling theoryinformation asymmetryBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 8, Iss 1 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	audit quality big four dividend firm value signalling theory information asymmetry Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	audit quality big four dividend firm value signalling theory information asymmetry Business HF5001-6182 Management. Industrial management HD28-70 Mohd Ashari Bakri Moderating effect of audit quality: The case of dividend and firm value in Malaysian firms
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.
format	article
author	Mohd Ashari Bakri
author_facet	Mohd Ashari Bakri
author_sort	Mohd Ashari Bakri
title	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_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_sort	moderating effect of audit quality: the case of dividend and firm value in malaysian firms
publisher	Taylor & Francis Group
publishDate	2021
url	https://doaj.org/article/712e32c401a140b1bea586577dbe0d0c
work_keys_str_mv	AT mohdasharibakri moderatingeffectofauditqualitythecaseofdividendandfirmvalueinmalaysianfirms
_version_	1718409479151681536

Moderating effect of audit quality: The case of dividend and firm value in Malaysian firms

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