Journal articles: 'Relevance of accounting information'

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Wijewardana, W. Percy. "Value relevance of accounting and Non-Accounting information." ACADEMICIA: An International Multidisciplinary Research Journal 8, no. 2 (2018): 5. http://dx.doi.org/10.5958/2249-7137.2018.00006.x.

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Shamki, Dhiaa. "Owners’ Equity and Accounting Information Relevance." Procedia - Social and Behavioral Sciences 164 (December 2014): 194–200. http://dx.doi.org/10.1016/j.sbspro.2014.11.067.

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Shamki, Dhiaa, and Ibrahim Khalaf Alulis. "Company's Characteristics and Accounting Information Relevance." Universal Journal of Accounting and Finance 4, no. 3 (June 2016): 107–16. http://dx.doi.org/10.13189/ujaf.2016.040302.

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Azar, Nasrin, Zarina Zakaria, and Noor Adwa Sulaiman. "The Quality of Accounting Information: Relevance or Value-Relevance?" Asian Journal of Accounting Perspectives 12, no. 1 (February 28, 2019): 1–21. http://dx.doi.org/10.22452/ajap.vol12no1.1.

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윤성용, 이호섭, and 박종혁. "Value Relevance of Accounting Information in KOSDAQ." Management & Information Systems Review ll, no. 25 (June 2008): 203–22. http://dx.doi.org/10.29214/damis.2008..25.008.

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Appiah, Kingsley Opoku, and Owusu Acheampong. "Has traditional accounting information lost its relevance?" Journal of Financial Reporting and Accounting 17, no. 3 (September 2, 2019): 554–70. http://dx.doi.org/10.1108/jfra-05-2016-0037.

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Purpose This paper aims to examine whether traditional accounting information has lost its relevance in the context of sub-Sahara Africa. Specifically, the study examines whether historical cost and inflation-adjusted data are related to the market value of equity and stock returns on the Ghana Stock Exchange (GSE). Design/methodology/approach The authors collect firm-specific data from annual reports of 20 listed firms from the GSE over the period 2007-2012. The authors use ordinary least squares and two stage least square (2SLS) to examine the value relevance of historical and inflation-adjusted income and equity. Findings The results suggest that the market equity is related to both historical-cost and inflation-adjusted earnings. Market return is also associated with both historical-cost and inflation-adjusted earnings and book value. Overall, the authors conclude that inflation-adjusted information content is more value relevant than the traditional cost accounting information. Research limitations/implications The findings are a wake-up call to policymakers and practitioners in formulating financial reporting policies. This study, however, focuses on only non-financial listed firms on the GSE. Thus, the results may not be valid for all companies in Ghana. Practical implications The finding has an implication on the choice of valuation used in the preparation and reporting of financial statements. Accordingly, the authors offer policy directions to financial reporting regulatory authorities to enhance the value relevance of accounting information. Social implications Regulators, especially the GSE may improve life of investors if the recommendations are transformed into directives that will help enhance the quality of financial reporting. Originality/value The findings suggest that inflation-adjusted data are more relevant in countries with extreme inflationary trend and lax International Financial Reporting Standards compliance enforcement. The results also lend support for the current cost accounting theory.

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Krismiaji, Krismiaji. "AUDIT COMMITTEE AND ACCOUNTING INFORMATION VALUE RELEVANCE." Substansi: Sumber Artikel Akuntansi Auditing dan Keuangan Vokasi 4, no. 1 (November 30, 2020): 1–16. http://dx.doi.org/10.35837/subs.v4i1.752.

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This paper describes the results of empirical research investigated the effect of audit committee characteristics (AC) on the accounting information value relevance (VR) for Indonesian companies in 2014 - 2018. VR is measured using the Ohlson Model, while AC is measured using its members and its independence members. By using data of 590 firm-years, this study found that the size of the committee audit and the AC independence positively affects the value relevance of EPS. Yet, the AC size affects negatively the BVS value relevance whereas the AC independence does not affect BVS value relevance. These results enrich the literature of value relevance, especially in connection to the AC characteristics.

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윤소라. "Accounting Standards Choice and the Value Relevance of Accounting Information." Korea International Accounting Review ll, no. 82 (December 2018): 133–53. http://dx.doi.org/10.21073/kiar.2018..82.007.

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Naimah, Zahroh. "Bias in Accounting and the Value Relevance of Accounting Information." Procedia Economics and Finance 2 (2012): 145–56. http://dx.doi.org/10.1016/s2212-5671(12)00074-3.

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Pratama, Maylady Nanda. "Fungsi Corporate Social Responsibility Disclosure dan Independent Commissioning: Relevancy Of Accounting Information." el-Qist : Journal of Islamic Economics and Business (JIEB) 10, no. 1 (June 2, 2020): 69–88. http://dx.doi.org/10.15642/elqist.2020.10.1.69-88.

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This research specifically aims to determine the moderating effect of CSR disclosure on the relevance of earnings value and book value. In addition, this study also aims to prove the different effects of CSR disclosure moderation on the relevance of earnings and book values ??in companies that have and do not have an independent board of commissioners. In this journal the accounting information reviewed includes the value of earnings and book value. Profit is the information in financial statements that is most often used by investors in company valuations. Book value is very important and cannot be ignored in measuring the relevance of earnings. Accounting information is said to have value relevance if the accounting information can be used to predict the market value of the company. In addition, this study also examines the differences in the effect of CSR exposure on earnings and book values ??for companies that have Independent commissioning and companies that do not have Independent commissioning. Non-financial information that also plays a role in value relevance is a corporate governance mechanism. The corporate governance mechanism adopted by the company includes establishing an independent board of commissioners. The test results show that earnings and book values ??have value relevance. The moderating effect of CSR disclosure on the relevance of earnings and book values ??shows that CSR disclosure decreases the relevance of earnings but increases the relevance of book values. From the results of the Chow test results indicate that there are differences in the CSR moderation coefficient on the relevance of earnings and book values ??in companies that do not have Independent commissioning. Key words: value relevance; earnings; book value; independent board of commissioners. ABSTRAK: Penelitian ini secara spesifik bertujuan untuk mengetahui efek moderasi pengungkapan CSR terhadap relevansi nilai laba dan nilai buku. Selain itu, penelitian ini juga bertujuan untuk membuktikan perbedaan efek moderasi pengungkapan CSR terhadap relevansi nilai laba dan nilai buku pada perusahaan yang memiliki dan tidak memiliki Dewan Komisaris Independen. Dalam jurnal ini informasi akuntansi yang dikaji meliputi nilai laba dan nilai buku. Laba merupakan informasi dalam laporan keuangan yang paling sering dipakai oleh para investor dalam penilaian perusahaan. Nilai buku sangatlah penting dan tidak dapat diabaikan dalam pengukuran relevansi nilai laba. Informasi akuntansi dikatakan memiliki relevansi nilai jika informasi akuntansi tersebut bisa digunakan untuk memprediksi nilai pasar perusahaan Selain itu Pada penelitian kali ini juga mengkaji perbedaan pengaruh pendedahan CSR terhadap nilai laba dan nilai buku untuk perusahaan yang memiliki independent commissioning dan perusahaan yang tidak memiliki independent commissioning. adapun Informasi non keuangan yang turut berperan dalam relevansi nilai adalah mekanisme corporate governance. Mekanisme corporate governance yang diterapkan oleh perusahaan antara lain adalah dengan membentuk dewan komisaris independen. Hasil pengujian menunjukkan bahwa laba dan nilai buku memiliki relevansi nilai. Efek moderasi pengungkapan CSR terhadap relevansi nilai laba dan nilai buku menunjukkan bahwa pengungkapan CSR menurunkan relevansi nilai laba namun meningkatkan relevansi nilai nilai buku. Dari hasil Hasil uji Chow menunjukkan bahwa terdapat perbedaan koefisien moderasi CSR terhadap relevansi nilai laba dan nilai buku pada perusahaan yang tidak memiliki Independent commissioning.

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Wijewardana, W. Percy. "A study of value relevance of accounting and non-accounting information." ACADEMICIA: AN INTERNATIONAL MULTIDISCIPLINARY RESEARCH JOURNAL 11, no. 1 (2021): 222–28. http://dx.doi.org/10.5958/2249-7137.2021.00070.7.

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Choi, Su-Mi, and Xiuhong Wang. "The Value Relevance of Retirement Benefits Accounting Information." Korean Journal of Accounting Research 22, no. 4 (August 31, 2017): 25–48. http://dx.doi.org/10.21737/kjar.2017.08.22.4.25.

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Lin, Wenshan, and K. K. Raman. "The housing value-relevance of governmental accounting information." Journal of Accounting and Public Policy 17, no. 2 (June 1998): 91–118. http://dx.doi.org/10.1016/s0278-4254(98)10004-2.

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Salvary, Stanley C. W. "Financial accounting information and the relevance/irrelevance issue." Global Business and Economics Review 5, no. 2 (2003): 140. http://dx.doi.org/10.1504/gber.2003.006203.

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Almujamed, Hesham I., and Mishari M. Alfraih. "Corporate governance and value relevance of accounting information." International Journal of Ethics and Systems 36, no. 2 (April 9, 2020): 249–62. http://dx.doi.org/10.1108/ijoes-08-2019-0140.

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Purpose This paper aims to explore how the characteristics of the board of directors (BoD) shape earnings and book value information available to market participants. Design/methodology/approach The authors investigated the impact of board size, presence of non-executives and role duality as proxies of effective corporate governance on the value relevance of financial reporting for 178 firms on the Kuwait stock exchange in 2013. Regression analysis based on Ohlson’s (1995) valuation model was used to test hypotheses. Findings The authors found that board size was significantly associated with company value and that Kuwaiti firms with large boards increased the value-relevance of earnings and book value. The influence of role duality was positive although not significant. The presence of non-executives on the board had a negative correlation with market value (not significant). Research limitations/implications These findings deliver empirical support for the prediction that the characteristics of the BoD improve the value relevance of financial reporting. Limitations such as small sample size and one-year duration of the study did not negate the basic findings, however. Future studies will use larger samples, longer duration and additional board characteristics. Practical implications This study provides empirical support for the hypothesis that board size influences market valuation. This study may benefit managers, investors and other decision-makers. Originality/value This study delivers empirical evidence on the impact of board characteristics on the value relevance of accounting information. It will be useful for regulators and market participants monitoring the influence of board characteristics on the value relevance of accounting information.

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Juniarti, Juniarti, Ferbiana Helena, Karina Novitasari, and Wenny Tjamdinata. "The Value Relevance of IFRS Adoption in Indonesia." Jurnal Akuntansi dan Keuangan 20, no. 1 (June 28, 2018): 13. http://dx.doi.org/10.9744/jak.20.1.13-19.

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Pros and cons of the benefits of IFRS adoption have become an ongoing debate following the inconclusive results of prior studies. Whether IFRS increase value relevance of accounting information or not, especially in developing countries is an interesting and relevance research question. Indonesia as one of the developing countries that committed to adopting IFRS has an interest in obtaining empiric evidence on the value relevance of accounting information after nearly five years of IFRS implementation. This study aims to fill the need to enhance adopters' compliance with the standard. Ohlson Modified Model (1995) is used to test the value relevance of accounting information. Using longitudinal data of listed manufacturing companies in Indonesia Stock Exchange (IDX), this study confirms that value relevance of accounting information increase after IFRS adoption than before adoption. The results robust using Pooled Least Square and Random effect model.

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Hoon Ki, Do, Wook Bin Leem, and Jee Hoon Yuk. "The effect of IFRS adoption on the value relevance of accounting information: evidence from South Korea." Investment Management and Financial Innovations 16, no. 2 (May 7, 2019): 78–88. http://dx.doi.org/10.21511/imfi.16(2).2019.07.

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This study investigates whether the value relevance of accounting information was changed after IFRS adoption in South Korea. Related prior studies have found mixed empirical evidence depending on research methodologies or research periods. Moreover, the effect of IFRS adoption on value relevance can be different between Korean stock markets (KSE and KOSDAQ) because they have different characteristics. Also, the main financial statements reported by Korean firms had changed from individual financial statements to consolidated financial statements after IFRS adoption. Thus, this study analyzes the effect of IFRS adoption on the value relevance of individual and consolidated accounting numbers expanding research periods (5 years before and after IFRS adoption) and comparing changes in explanatory powers of Ohlson (1995) model on each listing market. The empirical results indicate that the value relevance of Korean listed firms generally decreased after IFRS adoption. However, the value relevance of KSE listed firms decreased, while the value relevance of KOSDAQ listed firms increased after IFRS adoption. In addition, it was found that the effects of IFRS adoption on value relevance of individual and consolidated financial information were different depending on listed markets. This implies that different level of demand for information environment may induce differential effects of IFRS adoption on value relevance.

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Abeifaa Der, Basil, Petr Polak, and Masairol Masri. "Investigation on the value relevance of accounting information: evidence from incorporated companies in the Singapore capital market." Investment Management and Financial Innovations 13, no. 3 (August 23, 2016): 9–21. http://dx.doi.org/10.21511/imfi.13(3).2016.01.

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The purpose of this study is to investigate the relative, incremental and the systematic changes in value relevance of the accounting information. This study also attempts to investigate the effect of earnings management on the value relevance of accounting information. It basically uses Ohlson’s (1995) valuation model to test the conceptual framework. The findings of this paper reveal that book value is more value relevant and incremental followed by earnings and, then, cash flow. Cash flow, however, performs a lesser valuation role. The results also show that combined book value and earnings are more value relevant than combined book value and cash flow. As a third contribution, the paper also finds that the value relevance of some accounting variables has increased over time, while others showed no evidence of their inclined or declined patterns in the value relevance of accounting information. Finally, the paper finds that earnings management has no effect on the value relevance of accounting information. Further analyses suggest that earnings management is opportunistic in the short run, but efficient in the long run, when firms are small or have high asset turnover

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Henderson, B. Charlene, Kevin Kobelsky, Vernon J. Richardson, and Rodney E. Smith. "The Relevance of Information Technology Expenditures." Journal of Information Systems 24, no. 2 (September 1, 2010): 39–77. http://dx.doi.org/10.2308/jis.2010.24.2.39.

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ABSTRACT: Although information technology (hereafter, IT) expenditures represent an increasingly large investment for most corporations, firms are not required to disclose them separately in their financial statements. We hypothesize and find evidence that information about a firm’s IT expenditures helps explain its future performance as reflected in both accounting measures (residual income, earnings volatility) and market measures (stock price and long-run abnormal returns). In particular, we provide evidence of market mispricing and suggest the lack of firm-level annual IT expenditure disclosure as one potential reason for such mispricing. Altogether, the evidence presents a persuasive case that information about a firm’s IT expenditures is useful to stock market participants. The evidence we report is useful to managers and accounting policy makers contemplating the public disclosure of firm-level information about IT investments.

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Potin, Silas Adolfo, Patrícia Maria Bortolon, and Alfredo Sarlo Neto. "Hedge Accounting in the Brazilian Stock Market: Effects on the Quality of Accounting Information, Disclosure, and Information Asymmetry." Revista Contabilidade & Finanças 27, no. 71 (June 14, 2016): 202–16. http://dx.doi.org/10.1590/1808-057x201602430.

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ABSTRACT This paper investigates, in the Brazilian stock market, the effect of hedge accounting on the quality of financial information, on the disclosure of derivative financial instruments, and on the information asymmetry. To measure the quality of accounting information, relevance metrics of accounting information and book earnings informativeness were used. For executing this research, a general sample was obtained through Brazilian companies, non-financial, listed on the Brazilian Securities, Commodities, and Futures Exchange (BM&FBOVESPA), comprising the 150 companies with highest market value on 01/01/2014. Through the general sample, samples were compiled for applying the econometric models of value relevance, informativeness, disclosure, and information asymmetry. The sample for relevance had 758 companies-years observations within the period from 2008 to 2013; the sample for informativeness had 701 companies-years observations with the period from 2008 to 2013; the sample for disclosure had 100 companies-years observations, within the period from 2011 to 2012; the sample for information asymmetry had 100 companies-years observations, also related to the period from 2011 to 2012. In addition to the econometric models, the propensity score matching method was applied to the analyses of the hedge accounting effect on disclosure and information asymmetry. The evidence found for the influence of hedge accounting indicates a relation: (i) positive and significant concerning accounting information relevance and disclosure of derivatives; (ii) negative and significant for book earnings informativeness. Regarding information asymmetry, although the coefficients showed up as expected, they were not statistically significant.

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Kwon, Gee-Jung. "Comparative value relevance of accounting information among Asian countries." Managerial Finance 44, no. 2 (February 12, 2018): 110–26. http://dx.doi.org/10.1108/mf-07-2017-0261.

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Purpose The purpose of this paper is to compare the value relevance of various accounting information disclosed in financial statements of manufacturing companies listed on the stock markets of Korea, Japan, and China over ten years from 2006 to 2015. Design/methodology/approach The study uses Ohlson (1995) valuation model for empirical investigation and the financial data extracted from the OSIRIS DB to analyze the enterprise value relevance of accounting information for Korean, Chinese, and Japanese companies and to investigate the differences among them. Findings The results of the empirical analysis are as follows. First, the coefficient of accounting earnings is the highest in the samples of all firms in Korea, Japan, and China, followed by the coefficients for operating income, net cash flow, book value, and net operating cash flows. Next, Japan has the largest book value, followed by Korea, but China has a negative value. Japan has the largest coefficient of accounting earnings and net operating cash flow, followed by Korea and China. Japan has the largest coefficient of net cash flow and operating income, followed by China and Korea. The results show that the value relevance of accounting earnings is the largest among independent variables related to firm value, but the net operating cash flow is the smallest. In addition, the authors observe that the coefficient of Japan is the largest of all independent variables when compared by country. Originality/value The contribution of this study is that it shows the comparative value relevance of accounting information in most economically developed Asian countries such as Korea, Japan, and China. In addition, it is worth showing the characteristics of the national value decision variable by showing different incremental value relevance levels among the three countries.

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Badu, Bismark, and Kingsley Opoku Appiah. "Value relevance of accounting information: an emerging country perspective." Journal of Accounting & Organizational Change 14, no. 4 (November 5, 2018): 473–91. http://dx.doi.org/10.1108/jaoc-07-2017-0064.

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Purpose This paper aims to examine the value relevance of accounting information from an emerging country perspective. Design/methodology/approach The study adopts Ohlson (1995) Price model to examine the extent to which accounting information explain variation in stock prices of listed firms on the Ghana Stock Exchange. Findings The study reveals that earnings and book value of equity exhibit a positive and significant relationship in stock prices. Earnings explain higher variation in stock market values on the Ghana Stock Exchange compared to book value of equity. The study however finds that despite the introduction of the International Financial Reporting Standards in Ghana, the value relevance of book value and earnings have declined significantly over the period 2005-2014. Research limitations/implications A key implication is that regulators of capital markets, standards setters and accounting practitioners need to consistently improve upon the quality of financial reporting disclosures which will boost the confidence of users in their reliance on financial statements as the basis for choosing among alternative use of scarce resources. The authors adopted only the price model in testing the hypotheses. However, to provide comprehensive understanding of value relevance of accounting information, future studies can combine both the price and the return models. Originality/value The authors extend prior literature in the Ghanaian context with recent data. Finally, the study adds to the efficient market hypothesis by showing how share prices reflect accounting information produced by Ghanaian firms.

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Habib, Ahsan, and Istiaq Azim. "Corporate governance and the value‐relevance of accounting information." Accounting Research Journal 21, no. 2 (September 30, 2008): 167–94. http://dx.doi.org/10.1108/10309610810905944.

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Schweikart, James A. "The relevance of managerial accounting information: A multinational analysis." Accounting, Organizations and Society 11, no. 6 (January 1986): 541–54. http://dx.doi.org/10.1016/0361-3682(86)90035-8.

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Kousenidis, Dimitrios V., Anestis C. Ladas, and Christos I. Negakis. "Value relevance of conservative and non-conservative accounting information." International Journal of Accounting 44, no. 3 (September 2009): 219–38. http://dx.doi.org/10.1016/j.intacc.2009.06.006.

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Liu, Chelsea, Graeme Gould, and Barry Burgan. "Value-relevance of financial statements." International Journal of Managerial Finance 10, no. 3 (May 27, 2014): 332–67. http://dx.doi.org/10.1108/ijmf-02-2011-0016.

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Purpose – The Chinese capital markets are divided into two segments comprising of A-shares (traded by domestic investors) and B-shares (traded by foreign investors). Firms issuing A-shares are required to produce accounting reports under the Chinese Accounting Standards (CAS) and firms issuing B-shares are required to report under the International Accounting Standards (IAS). The purpose of this paper is to investigate the comparative value-relevance of accounting information in the Chinese capital markets, in particular whether the value-relevance associated IAS exceeds that of CAS. Design/methodology/approach – This study undertakes a capital market research approach. Two statistical models are employed to test the value-relevance of competing accounting information on share prices: the Price Model and the Return Model. This study takes advantage of the parallel reporting frameworks governing the A-share and B-share markets buy using the same firms which issue both A-shares and B-shares. Findings – The analysis supporting the study demonstrates that both CAS and IAS information is value relevant to investors in the Chinese capital markets but that IAS provide more useful information. Additionally it is observed that reconciliation variables (representing the discrepancy between IAS- and CAS-based accounting figures) are not significant in explaining market valuation or returns on stock. Research limitations/implications – This study provides evidence of value-relevance of accounting reports on the Chinese capital markets for the period of 1999-2005. The period under investigation captures the significant development in China's accounting regulations which took place in 1998 and 2001. The recent shift in accounting regulations in China from CAS to IAS is expected to improve the dissemination of financial information by publicly listed Chinese firms. Practical implications – This study investigates the reporting requirements on the Chinese capital markets during a period in which accounting reporting requirements underwent a significant change as part of the internationalization of accounting standards. Both A- and B-share markets were investigated simultaneously in order to provide an objective analysis and avoid sampling selection bias present in other studies. Social implications – The recent shift in accounting regulations in China from CAS to IAS is expected to improve the dissemination of financial information by publicly listed Chinese firms. Originality/value – This paper extends previous research on value-relevance of accounting reports in the Chinese capital markets by capturing the period in which the reporting requirements had experienced significant change. This paper also takes advantage of the dual reporting framework in order to mitigate potential sampling bias present in previous studies and employs a reconciliation variables not previously used.

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El-Diftar, Doaa, and Tarek Elkalla. "The value relevance of accounting information in the MENA region." Journal of Financial Reporting and Accounting 17, no. 3 (September 2, 2019): 519–36. http://dx.doi.org/10.1108/jfra-09-2018-0079.

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Purpose The purpose of this paper is to examine the value relevance of accounting information in the Middle East and North Africa region (MENA) region with an emphasis on the potential impact of IFRS adoption. This paper aims to not only examine the value relevance of accounting information in the MENA region but also draw comparisons between Gulf countries (GCC) and non-GCC country firms to determine whether there are distinct differences across the two regions. Design/methodology/approach To investigate the value relevance of accounting information in the MENA region, two pooled regression models are used based on the Ohlson (1995) model. The first regression model is conducted for the GCC and non-GCC regions separately. A second regression model is conducted using a pooled sample of the MENA region collectively with dummy and interaction variables to further explore the potential differences between the two regions in terms of the value relevance of accounting information. Findings The empirical results show that the measures of accounting information have a highly significant positive relationship with the market value per share for firms in the MENA region, thereby indicating that accounting information in the MENA region is value relevant. Although book value per share and earnings per share are significant determinants of value relevance in both GCC and non-GCC country firms, operating cash flows per share is only a significant determinant of value relevance in non-GCC country firms. The research findings of the study also show a significant negative impact of IFRS adoption on the value relevance of accounting information in the MENA region. Practical implications This research paper provides important insights for investors and regulators by providing evidence that accounting information is value relevant in the MENA region, and that IFRS adoption does not necessarily lead to a greater degree of value relevance. In fact, investors and regulators should be aware that the adoption of IFRS in MENA country firms results in diminished value relevance of accounting information. This finding is of particular significance to policymakers attempting to improve accounting disclosure. Originality/value The paper expands the value relevance of accounting information literature in the context of developing economies, in general, and the MENA region, in particular. There is a paucity of research into the value relevance of accounting information for MENA country firms, particularly in the case of the impact of IFRS adoption. Thus, this paper provides an important contribution in terms of expanding the value relevance literature in relation to IFRS adoption in the MENA region.

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Soussi, Jihene Chedlia. "Impact of Voluntary Disclosure on the Relevance of Accounting Information." Journal of Education and Vocational Research 3, no. 5 (May 15, 2012): 138–53. http://dx.doi.org/10.22610/jevr.v3i5.61.

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Information disclosure by firms has grown considerably. The increased level of firmsâ€™ disclosure has been accompanied by the loss of relevance of accounting information over time (Lev, 1989, Ramech and Thiagarajan, 1995, Lev and Zarowin, 1999, Brown and al, 1999, Chang, 1999 and Chalmers and al, 2011). Our objective is to determine whether the voluntary disclosure explains the low relevance of accounting information. We find that medium-technology companies have the highest level of relevance of accounting information. However, the relevance of the accounting model is low for lowtechnology firms and high technology firms. The introduction of the overall disclosure index and subindexes of disclosure has an effect on the relevance of the accounting model (this effect is significant only in some cases for low-tech firms). Furthermore, the addition of variables of disclosure to the accounting model makes the accounting variables relevant to investors for low-tech firms. For medium-tech firms, book values and earnings are relevant. While, for high technology firms, only the earnings are relevant. We also show that the introduction of intangible expenses, the weight of intangibles and the index of disclosure on intangibles is growing, but not significantly the relevance of the accounting model.

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Abdollahi, Ahmad, Yasser Rezaei Pitenoei, and Mehdi Safari Gerayli. "Auditor's report, auditor's size and value relevance of accounting information." Journal of Applied Accounting Research 21, no. 4 (July 1, 2020): 721–39. http://dx.doi.org/10.1108/jaar-11-2019-0153.

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PurposeThe present study sets out to examine the effect of auditor's report and audit firm size on the value relevance of accounting information of the companies listed on the Tehran Stock Exchange during the years 2008–2017.Design/methodology/approachThe study includes a sample of 1,530 firm-year observations drawn from the listed companies, and the research hypotheses were analyzed using multivariate regression model based on panel data.FindingsThe findings reveal that auditor's report and audit firm size are positively and significantly correlated with two indicators of the value relevance of accounting information including value relevance of earnings and book value per share. Also our results exhibit robustness to the alternative measure of auditor's attributes.Research limitations/implicationsAs far as we know, this is the first study to analyze the association between auditor's attributes and value relevance of accounting information in emerging capital markets, thereby generating certain implications for investors, managers, capital market policy makers and audit profession regulators in general and those in emerging markets in particular.Practical implicationsOur findings have implications for policy makers, regulators, managers and investors. Our evidence on the positive association between auditor's size and value relevance of accounting information should help policy makers and regulators which they improve value relevance of accounting information and financial reporting by integrating small audit firms and setting up larger audit firms.Originality/valueA rise in the value relevance of accounting information deserves further attention while drawing investment, selling the stocks of existing firms and increasing investor's decision-making ability. The way how auditor's attributes can promote the value relevance of accounting information is still open to new research.

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Yurniwati, Yurniwati, Amsal Djunid, Nini Sumarni, and Ike Pranita. "The Influence of the Quality of an Audit to Relationship Other Comprehensive Income (OCI) And Relevance of Value Accounting Information, And Asymmetry of Information (Study on Companies in Indonesia)." GATR Global Journal of Business Social Sciences Review 5, no. 1 (January 8, 2017): 46–52. http://dx.doi.org/10.35609/gjbssr.2017.5.1(7).

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Objective - This study examines the influence of the quality of an audit to the relationship of Other Comprehensive Income (OCI) and Relevanceof Value Accounting Information, and Asymmetry of Information in Indonesia's companies. Methodology/Technique - This research uses secondary data obtained from the company's annual report in 2012 - 2014. A purposive sampling method is used to collect data and the analysis of the hypothesis was conducted usingmultiple linear regression analysis. Findings - The research has shown that Quality of Audit has a significant influence to the relationship of the OCI disclosure and Relevance of Value Accounting Information has a value of sig. 0.000, F calculate is 26.816 larger than F table 2.396 and adjusted R square 0.241. Novelty - The study looks at the disclosures of OCI component's role in the investors decision making and it increases value relevance of accounting information and reducing information asymmetry. Type of Paper - Empirical Keywords: Other Comprehensive Income (OCI); Relevance of Value Accounting Information; Information Asymmetry; Quality of Audit. JEL Classification: D82, M41, M42.

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Yaghoobi, Horiye, Mohsen Moradi, and Mehdi Jabbari Nooghabi. "Effect of Employee Expenses on Usefulness of Accounting Information." International Journal of Accounting and Financial Reporting 1, no. 1 (March 21, 2015): 161. http://dx.doi.org/10.5296/ijafr.v5i1.7285.

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In this study, the employee expenses model and earnings model are compared in order to determine whether or not putting the employee expenses in the earning predictability models and high relevance of accounting information to stock value, increases usefulness of accounting information. We use the term ‘earnings model’ to refer to the consideration of earnings alone, for determining earnings predictability as well as value relevance. The term ‘employee model’ refers to the consideration of earnings and employee expenses in determining earnings predictability as well as value relevance. In this study, the cost of employees’ salary, which is shown under the heading of General and administrative expenses in the income statement, is the only monetary information that is available for us and relevance value is determined through the effectiveness of the models in determining stock returns. After applying these limitation, companies which were active in Tehran Stock Exchange from2003 to 2012 were chosen as the target population. The results showed that compared to earnings model, the employee expenses model provides a better prediction of the earnings but it isn’t a better model for predicting the stock relevance (related to the return of the stock).

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Ezejiofor, Ezejiofor, and Raymond Asika (PhD). "Effect of IFRS on Value Relevance of Accounting Information: Evidence from Quoted Manufacturing Firms in Nigeria." International Journal of Trend in Scientific Research and Development Volume-2, Issue-5 (August 31, 2018): 2255–91. http://dx.doi.org/10.31142/ijtsrd18346.

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Kouki, Ahmed. "IFRS and value relevance." Journal of Applied Accounting Research 19, no. 1 (February 12, 2018): 60–80. http://dx.doi.org/10.1108/jaar-05-2015-0041.

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Purpose The purpose of this paper is to compare the value relevance of accounting information between International Financial Reporting Standards (IFRS)-firms and non-IFRS-firms over five years before mandatory IFRS adoption from 2000 to 2004 and six years after IFRS adoption from 2006 to 2011. Design/methodology/approach The sample includes 1166 firm-year observations that cover firms from three Europeans countries. Different econometric tests, multivariate and panel regressions have been used to verify the hypotheses. Findings In the pre-IFRS period, voluntary IFRS adoption did not improve the value relevance of accounting information. The results indicate that the information contents of non-IFRS-firms in the post-adoption period have higher quality than in the pre-adoption period. The findings show a higher association between accounting information, stock prices and stock returns over both periods, however, the difference in results is not statistically significant. Research limitations/implications This study was not generalized to other stock exchanges that have a significant weight in the European Union, such as the FTSE 100 companies or the SP/MIB. Practical implications This study has some implications for standards setters, firms and practitioners. The transition to IFRS reduces the diversity of accounting systems and institutional conditions (capital market structure, Taxation systems). In addition, mandatory IFRS adoption engendered changes in firms’ business and organizational models that led accountants to improve their educational and training programs. Originality/value This paper contributes to the value relevance as well as IFRS literature by using a sample from code-law origin countries that switched from a debt-oriented system to shareholder-oriented system. It offers a comparative approach between IFRS-firms and Non-IFRS-firms in the pre- and post-adoption periods. In contrast, prior studies focused on the comparison during only one period. This empirical evidence should be of interest to investors and policymakers in other markets.

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Dimitrios, Anestis, and Christos. "Value Relevance of Accounting Information in the Pre- and Post-IFRS Accounting Periods." EUROPEAN RESEARCH STUDIES JOURNAL XIII, Issue 1 (November 1, 2010): 143–52. http://dx.doi.org/10.35808/ersj/263.

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Chalmers, Keryn, Farshid Navissi, and Wen Qu. "Value relevance of accounting information in China pre‐ and post‐2001 accounting reforms." Managerial Auditing Journal 25, no. 8 (September 7, 2010): 792–813. http://dx.doi.org/10.1108/02686901011069551.

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Leonardo, Amadeo, and Sparta Sparta. "Pengaruh Kualitas Software, Akurasi Informasi, Ketepatan Waktu Informasi, dan Relevansi Informasi terhadap Kepuasan End-User Sistem Informasi Akuntansi." Jurnal ULTIMA Accounting 7, no. 2 (August 1, 2016): 32–53. http://dx.doi.org/10.31937/akuntansi.v7i2.180.

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The objective of this research to test, examine and to provide empirical evidence to the influence of accounting software quality, accuracy of the information, timeliness of the information and relevance of the information toward the accounting information system enduser satisfaction. The research was conducted using a survey method to to provide the questionnaires to the employees in retail department store. Data used in this study was primary data, id est: questionnaires. The respondents in this study were 118. Data analysis techniques in this study using multiple linear regression. The results of this study were (1) accounting software quality had a significant influence toward the accounting information system end-user satisfaction; (2) accuracy of the information had no significant influence toward the accounting information system end-user satisfaction; (3) timeliness of the information had a significant influence toward the accounting information system end-user satisfaction; (4) relevance of the information had a significant influence toward the accounting information system end-user satisfaction; (5) accounting software quality, accuracy of the information, timeliness of the information and relevance of the information had significant influence toward the accounting information system end-user satisfaction simultaneously. Keywords: Accounting information system end-user satisfaction, Accounting software quality, Accuracy of the information, Timeliness of the information, Relevance of the information.

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He, Wen, Ki Hoon Hong, and Eliza Wu. "Does Investor Sentiment Affect the Value Relevance of Accounting Information?" Abacus 56, no. 4 (September 9, 2020): 535–60. http://dx.doi.org/10.1111/abac.12203.

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Ha, Soon-Gum. "The Value Relevance of Accounting Information in the Contract Industries." Korean Journal of Accounting Research 23, no. 2 (May 31, 2018): 25–49. http://dx.doi.org/10.21737/kjar.2018.05.23.2.25.

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Olajide Oladele, Patrick, Muyiwa Ezekiel Alade, Rotimi Oladele, Ayodele Afolabi Yakibi, and Omobola Ajayi. "Value relevance of ifrs based accounting information : Nigerian stockbrokers’ perception." African Journal of Business and Economic Research 13, no. 3 (December 15, 2018): 75–93. http://dx.doi.org/10.31920/1750-4562/2018/v13n3a4.

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Mbekomize, Christian J., and Selinkie Popo. "Value Relevance of Accounting Information in the Botswana Listed Companies." International Business Research 13, no. 5 (April 22, 2020): 46. http://dx.doi.org/10.5539/ibr.v13n5p46.

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The main purpose of the study was to examine the statistical relationship between four sets of accounting information and market share prices using the data of companies listed on the Botswana Stock Exchange over the period from 2012 to 2018. Annual reports and Botswana Stock Exchange – Equity Statistics data bank were the sources of accounting information and market prices respectively. The Ordinary Least Square regression method was used to analyse data. The results suggest that earnings are the most value relevant information to share prices followed by dividends and lastly book value. While book value yielded weak value relevance operating cash flows did not explain changes in share prices in the Botswana equity market. The combination of earnings and dividends was more value relevant than any other mix of accounting amounts. The study further revealed that the market share price at the end of the 6th month from the year end was the most influenced price. These results have implications to quoted companies regarding the importance they attach on earnings and dividends information and their timely publication. The paper recommends for speedy dissemination of earnings and dividends information since investors significantly consider such information in market share pricing decisions.

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Kristanto, Ari Budi. "Does IFRS Convergence Promote the Value Relevance of Accounting Information?" Jurnal Ekonomi dan Bisnis 18, no. 1 (June 18, 2016): 19. http://dx.doi.org/10.24914/jeb.v18i1.259.

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<p>Penelitian ini bertujuan untuk memperoleh bukti empiris mengenai adanya kandungan informasi, relevansi nilai informasi akuntansi dan pertumbuhannya selama proses konvergensi IFRS di Indonesia. Secara khusus penelitian ini dilakukan pada perusahaan perbankan, asuransi dan pembiayaan yang terdaftar di Bursa Efek Indonesia. Kandungan informasi diindikasikan oleh Trading Volume Activity dan Variability of Abnormal Return. Adapun relevansi nilai informasi akuntansi diproksikan oleh koefisien regresi dari fungsi pengaruh informasi akuntansi terhadap harga saham. Hasil penelitian ini menemukan adanya kandungan informasi serta relevansi nilai informasi akuntansi selama periode konvergensi IFRS. Temuan empiris ini menjadi salah satu indikasi adanya manfaat konvergensi IFRS bagi relevansi nilai informasi akuntansi. Berkaitan dengan konvergensi itu sendiri, penelitian ini menemukan bahwa relevansi nilai informasi akuntansi mengalami peningkatan secara bertahap selama periode konvergensi. Relevansi nilai informasi akuntansi ditemukan pada perusahaan dengan rasio saham diperdagangkan yang tinggi serta perusahaan dengan saham yang tidak likuid. Relevansi nilai yang lebih tinggi juga ditemukan pada perusahaan yang terafiliasi dengan perusahaan dari negara yang mengadopsi IFRS.</p>

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Umoren, Adebimpe, Paul Akpan, and Ebi Ekeria. "Value Relevance of Accounting Information in Nigerian Listed Financial Companies." Advances in Research 16, no. 1 (August 10, 2018): 1–8. http://dx.doi.org/10.9734/air/2018/42794.

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Omran, Mohamed, and Yasean A. Tahat. "Does institutional ownership affect the value relevance of accounting information?" International Journal of Accounting & Information Management 28, no. 2 (March 9, 2020): 323–42. http://dx.doi.org/10.1108/ijaim-03-2019-0038.

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Purpose Drawing upon agency theory, this study aims to assess the value relevance (VR) of accounting information released by non-financial firms listed on the Kuwait stock exchange for the period of 2015-2018. Also, the influence of institutional ownership level and other explanatory variables, namely, book value per share, earnings per share, growth in assets and changes in financial leverage on share prices is examined. Design/methodology/approach To test the hypotheses, the Ohlson (1995) model is extended. This study uses panel data analysis and applies appropriate statistical techniques to measure empirical relationships. Findings The results show that the VR of accounting information released by the Kuwaiti non-financial listed firms varies over the period of 2015-2018. Book value and earnings have significant and positive effects on share prices. In recent years, the VR of book value information has been growing, while that of earnings information has been declining. Institutional ownership level has a significant and positive influence on the VR of accounting information released by the Kuwaiti non-financial listed firms. The findings confirm a positive power, signalling growth in assets regarding the share prices. However, no significant relationship between changes in financial leverage and share prices is found. Practical implications The findings of the study provide evidence of the linkage between VR and institutional ownership level, which promotes the understanding of the influence of institutional investors on a firm’s market value. Empirical evidence from Kuwait will have international implications and can serve as a guide for accounting researchers studying other emerging markets. Capital market regulators can provide guidelines in the form of information characteristics and elements of financial statements that need improvement. Finally, the findings assist non-financial listed firms to enhance the quality of accounting information by identifying the strengths and weaknesses in their financial reports. Originality/value This study extends the previous literature by investigating a relatively new set of data in more depth than that has been examined by prior research, which focusses on the relationship between accounting information and the firm’s market value.

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Mion, Lars, Georgios Georgakopoulos, Petros Kalantonis, and Nicolaos Eriotis. "The Value Relevance of Accounting Information in Times of Crisis." International Journal of Corporate Finance and Accounting 1, no. 2 (July 2014): 44–67. http://dx.doi.org/10.4018/ijcfa.2014070104.

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The financial crisis started in 2007 with the credit crunch persists until today in the form of the European debt crisis. The main focus of this paper is the relevance of financial statements in determining firm market value in such times. The work contributes to this research stream as one of the earliest studies probing into the effects of the credit crunch and the euro-debt crises. This paper examines a sample of firm year observations from 2003 to 2011 of companies listed in the Amsterdam Euronext exchange. It focuses on the relation between market values and both book values and net income measures. The findings suggest that the combined explanatory power of the independent variables decreases in the years marked as crisis years. Net income leads to less value relevance high lighting the importance of book values. Incremental explanatory power of book values increases during the credit crunch, and decreases afterwards.

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Shamki, Dhiaa, and Azhar Abdul Rahman. "Does financial disclosure influence the value relevance of accounting information?" Education, Business and Society: Contemporary Middle Eastern Issues 6, no. 3/4 (September 16, 2013): 216–32. http://dx.doi.org/10.1108/ebs-05-2013-0014.

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Elshandidy, Tamer. "Value relevance of accounting information: Evidence from an emerging market." Advances in Accounting 30, no. 1 (June 2014): 176–86. http://dx.doi.org/10.1016/j.adiac.2014.03.007.

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Nelwan, Melinda Lydia, Christo Simatupang, and Billy Ivan Tansuria. "Value Relevance of Accounting Information in the Presence of Earnings Management." Jurnal Reviu Akuntansi dan Keuangan 10, no. 2 (July 25, 2020): 321. http://dx.doi.org/10.22219/jrak.v10i2.11856.

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This study examines the value relevance of accounting information. This study investigates whether accounting information has impact on the share prices. In addition, it examines whether earnings management moderates the value relevance of accounting information to the market. Accounting information in this study consists of earnings, book value of equity, and cash flows, and the earnings management is proxied by discretionary accruals measured using the performance-adjusted modified Jones model. Using time series analysis, there are 98 samples of listed manufacturing corporations used in this study during 2014 which is the period of this study. The results show that earnings, book value of equity, and cash flows simultaneously affect the share prices, meaning that accounting information is value relevant to the market, although there is evidence that partially, only cash flows have impact on share prices. This study also found that the presence of earnings management weakens the value relevance of earnings. To some extent, the results indicate that earnings management eliminates the value relevance of earnings and cash flows.

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Khairani, Khairani. "KONVERGENSI AKUNTANSI DAN RELEVANSI NILAI INFORMASI AKUNTANSI PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA." Imara: JURNAL RISET EKONOMI ISLAM 3, no. 1 (June 29, 2019): 73. http://dx.doi.org/10.31958/imara.v3i1.1472.

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This study aims to explore the value relevance of accounting information in the period before an after the implemented of IFRS in Indonesia uses the price models. Implementation of IFRS was predicted will be increase of value relevance of accounting information. This study uses the value of accounting earnings and book value of equity as a proxy for the value relevance of accounting information. The value relevance of accounting information in the decision-making of investors as reflected in the stock price. The population of this research is a listed public company on the Indonesia Stock Exchange in the period 2009-2015. The data are choice using purposive sampling method, with the result that total sample are 45 companies. This research analyzed using Linier Regretion, Paired-Sample T Test and significance simultant test. Results of this study indicate that the adoption of IFRS -based standards in Indonesia has been able to improve the value relevance of accounting information.

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Puspitaningtyas, Zarah. "RELEVANSI NILAI INFORMASI AKUNTANSI DAN MANFAATNYA BAGI INVESTOR." EKUITAS (Jurnal Ekonomi dan Keuangan) 16, no. 2 (June 1, 2012): 164. http://dx.doi.org/10.24034/j25485024.y2012.v16.i2.2321.

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The concept of value relevance of accounting information and the concept of decision usefulness of accounting information are interrelated. The value relevance of accounting information emphasizes on how accounting information has a value relevant for market participants (investors). Whereas, the concept of decision usefulness of accounting information emphasizes on how financial statements can be more useful? How investors react to the announcement of accounting information. These reactions will prove that the content of accounting information is a very important issue in investment decision-making. So it can be said that accounting information was useful for investors. Analysis of this study used a qualitative approach, we used semi–structured interview method for collecting data. Informant was a security analyst who provides advocacy to investors who make stock investment in real estate and property companies listed on IDX. Selection of informants using snowball technique.The results indicate that accounting information gives meaning usefulness for investors. Therefore, this study’s findings add strength of the concept of value relevance of accounting information and the usefulness of accounting information for market participants (investors).

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Jones, Stewart, and Loura Widjaja. "The Decision Relevance of Cash‐Flow Information: A Note." Abacus 34, no. 2 (September 1998): 204–19. http://dx.doi.org/10.1111/1467-6281.00030.

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Journal articles on the topic 'Relevance of accounting information'

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