Citation

Gan, Chin Yee (2023) Fair value accounting of equity instruments: The effects of equity instruments presentation format on investors' risk perception and investing decisions. PhD thesis, Multimedia University.

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Abstract

MFRS 9 provides an option of presenting the UGLEI with a strategic purpose in either PL or OCI statements. This flexibility raises an issue in investors' judgment which may influence their risk perception and investing decision. As financial reporting involves human decision-making, it is crucial to incorporate behavioral aspects in this study. Hence, this study investigates how the alternative presentation of UGLEI with strategic purpose under MFRS 9, when moderate with its volatility and share price stability, affects investors' risk perception and investing decision. This study uses an experimental approach with a psychology framework and efficient market hypothesis to examine the issues identified. A fictitious insurance company case study was developed using a two-by-two-by-two factorial design, with a total of eight manipulated cases to examine the research objectives. 420 professional accountants have been invited to participate in this study, and the final usable sample is 134. The result of this study suggests that the option given under MFRS 9 on the presentation of UGLEI in either Pl or OCI statement alone may not affect investors' risk perception and investing decision. However, when UGLEI was presented in OCI and moderated with the volatility of UGLEI, there was an impact on investing decisions of investors. On the other hand, the UGLEI were found to be risk relevant as there is a moderating effect of the volatility of UGLEI and stability of share price when presenting UGLEI in the statement of PL and under extreme conditions (at nonvolatile UGLEI trend or stable share price trend).

Item Type:	Thesis (PhD)
Additional Information:	Call No.: HG4515 .G36 2023
Uncontrolled Keywords:	Investments—Decision making
Subjects:	H Social Sciences > HG Finance > HG4501-6051 Investment, capital formation, speculation
Divisions:	Faculty of Business (FOB)
Depositing User:	Ms Nurul Iqtiani Ahmad
Date Deposited:	27 Aug 2024 09:02
Last Modified:	27 Aug 2024 09:02
URII:	http://shdl.mmu.edu.my/id/eprint/12863

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