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Effect of Cash Holding Towards Firm’s Efficiency: Moderating Effect of Earning Quality

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Proceedings of the 2nd Advances in Business Research International Conference

Abstract

This conceptual paper attempts to assess the moderating effect of earning quality on the relation of cash holding towards the firm’s efficiency by sector in Malaysia. Failure in utilizing the cash within the firms may lead to the existence of agency conflict which later will cause the firm value to drop. This situation later will cause the manager to change the figures of earning in the financial report throughout the reporting period that will lead to poor earning quality. The earning quality will influence the efficiency of the firms as the financial report will reflect the actual economic activity. Changes in financial report may lead to the misallocation of resources and directly affect the efficiency of the firms. Generally, the findings have the important information that can be used in proposing the new policy in managing the cash for each sector in Malaysia.

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Author information

Authors and Affiliations

  1. Faculty of Business Management, Universiti Teknologi MARA (UiTM), Shah Alam, Sabah, Malaysia

    Siti Julea Binti Supar, Imbarine Bujang & Taufik Abdul Hakim

Authors
  1. Siti Julea Binti Supar
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  2. Imbarine Bujang
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  3. Taufik Abdul Hakim
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Corresponding author

Correspondence to Siti Julea Binti Supar .

Editor information

Editors and Affiliations

  1. University Teknologi MARA , Shah Alam, Malaysia

    Fauziah Noordin

  2. Universiti Teknologi MARA , Shah Alam, Malaysia

    Abdul Kadir Othman

  3. Universiti Teknologi MARA , Shah Alam, Selangor, Malaysia

    Erne Suzila Kassim

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© 2018 Springer Nature Singapore Pte Ltd.

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Supar, S.J.B., Bujang, I., Hakim, T.A. (2018). Effect of Cash Holding Towards Firm’s Efficiency: Moderating Effect of Earning Quality. In: Noordin, F., Othman, A., Kassim, E. (eds) Proceedings of the 2nd Advances in Business Research International Conference. Springer, Singapore. https://doi.org/10.1007/978-981-10-6053-3_12

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