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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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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