The CMAR and extent of compliance with IFRS 101 standard among Malaysian ace market companies

Abstrak

Malaysia is on the track to achieve full convergence and adoption of the International

Financial Reporting Standards (IFRSs) by 2012. This study seeks to find out the extent

of compliance with IFRS 101 ‘P

resentation of Financial Statements’ before the effective

date. Using total disclosure index (TDI), the findings shows that most of Malaysian Ace

Market companies have complied with IFRS 101. The present study also indicates that

the Cumulative Market Adju

sted Return (CMAR) is positive and significant for both

partial and full compliance of IFRS 101 among the Malaysian Ace Market companies.

Multivariate regression analysis further provides a lack of significant association

between CMAR and announcement of e

arnings (i.e. EPS). Nevertheless, the percentage

of independent directors on the board (BDIND) is found to be a positive and a significant

corporate governance variable that associates with CMAR. These findings imply that

policy makers and regulators shoul

d encourage Ace Market companies to have the

most optimal number of independent board of directors for future improvements of

CMAR