Kerelevanan Nilai Pelaporan Segmen di Malaysia

Prior studies indicated that segment reporting is relevant for assessing risk and returns of firms with diversified activities and operated in multilocation. Therefore, several improvements were introduced to ensure firms are more transparent in providing segment reporting. In Malaysia, in line with the development at international level, Malaysian Accounting Standards Board (MASB) has issued MASB 22 Segment Reporting in 2002 to replace IAS 14 Segment Reporting, which has been said contain with several drawback. The aim of this study is to examine whether segment information as reported under MASB 22 is relevant and useful (value relevance) in decision making. Specifically, the present study attempts to examine the value relevance of segment earnings and net book value. The results indicate that segment earnings and net book value are value relevant. However, the value relevant of segment net book value is limited to certain situation. Sensitivity analysis supports these findings. Consistence with previous studies, this study found that segment earnings and net book value do not have incremental explanatory power. This suggests that although segment earnings and net book value are value relevant, investors still consider firm s net book value and earnings important in determining firm s value