Accounting Standards and the Value Relevance of Financial Statements

2019 ◽  
Vol 9 (11) ◽  
pp. 337-345
Author(s):  
Shafi Mohamad ◽  
Ooi Chee Keong ◽  
Syed Ehsanullah
Keyword(s):  
Value Relevance ◽  
Accounting Information ◽  
Accounting Standards ◽  
Financial Statements ◽  
Listed Firms ◽  
Protection Mechanisms ◽  
The Difference ◽  
The Relationship

Using the data of 68 Malaysian listed firms, this study attempts to examine the relationship between accounting standards and the value relevance of financial statements. It also explores the difference in accounting treatment between accruals accounting and cash accounting, and evidence of supplies. This process confirmed that accruals accounting provided a more transparent picture of accounting information when compared with cash accounting aspect. Our findings are quite consistent with our hypothesis which clearly states that in economies wherein strong and secure protection mechanisms for shareholders exist, tend to apply the use of accruals accounting with confidence, assuming that the value relevance of accounting information would not be compromised at any stage.

scholarly journals The Relationship Between Accounting Information in the Financial Statements and the Stock Returns of Listed Firms in Vietnam Stock Exchange

2017 ◽  
Vol 9 (10) ◽  
pp. 1
Author(s):  
Ngoc Hung Dang ◽  
Thi Viet Ha Hoang ◽  
Manh Dung Tran
Keyword(s):  
Stock Returns ◽  
Stock Exchange ◽  
Accounting Information ◽  
Financial Statements ◽  
Rate Of Return ◽  
Policy Makers ◽  
Earnings Volatility ◽  
Listed Firms ◽  
Relationship Of ◽  
The Relationship

This study is conducted to analyse the relationship between accounting information in the financial statements and the stock returns of listed firms in Vietnam Stock Market. Using OLS, FEM, REM, GLS, and GMM regression models, the study examines the relationship of earnings, volatility in the rate of return, size, levering ratios and growth rates to the stock returns of 274 firms in the period from 2012 to 2016. Findings from the study show that the rate of return, the change in the rate of return, gearing ratio and growth rate are positively correlated to the stock returns, while the size of firm by assets is negatively related to stock returns. Based on the research’s results, the authors also provide some recommendations for investors, firm management and policy makers.

scholarly journals i, The Impact of Adoption of IFRS 9 on the Value Relevance Accounting Information for the Companies Listed in ISX

2021 ◽  
Vol 11 (3) ◽  
Author(s):  
Prof Dr Bushra Najem Aubdullah Al- Mashhadan ◽  
Prof Dr Bushra Najem Aubdullah Al- Mashhadan
Keyword(s):  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Financial Statements ◽  
Book Value ◽  
Earnings Information ◽  
Income Statement ◽  
Ifrs 9 ◽  
The Impact ◽  
The Relationship

This research aims to know the effect of adopting IFRS 9 on the relevance of the value of the accounting information of the companies in the Iraqi Stock Exchange. Researchers relied on analyzing the financial statements of 10 listed companies for years 2016 – 2019. Researchers used the Ohlson price model to test the relationship between accounting information and value relevance. The research indicated that there is a significant relationship between the adoption of IFRS 9 and the relevance of the value of the earnings and the book value, but the earnings information is more relevance than the book value information, it is due to the interest of investors in the income statement in making investment decisions.

The Relationship between Accounting Information Reported In Financial Statements And Stock Returns - Empirical Evidence From Vietnam

2015 ◽  
Vol 1 (1) ◽  
pp. 229
Author(s):  
Tran Thi Thanh Hai ◽  
Nguyen Ngoc Diem ◽  
Ho Quoc Binh
Keyword(s):  
Stock Market ◽  
Stock Returns ◽  
Fixed Effects ◽  
Accounting Information ◽  
Financial Statements ◽  
Random Effects Model ◽  
Fixed Effects Model ◽  
Listed Firms ◽  
The Relationship ◽  
Data Estimation

Based on Easton & Harris model (1991), this study aims to investigate the relationship between accounting information reported in financial statements and stock returns. We collected the sample of 108 listed firms on the Ho Chi Minh stock market - the most developmental economic zone in Vietnam during the period of 4 years, from 2010 to 2013. In order to examine the relationship, this paper principally used quantity approach and data estimation techniques of Pooled Regression Model, Fixed Effects Model (FEM) and Random Effects Model (REM). We then utilized the Hausman Test to choose an appropriate model between FEM and REM. The results indicate that there is an association between accounting information and stock returns in Vietnam, but this association is considerably weak. It implies that the accounting information is less useful to make investment decisions in the Vietnamese stock market.

scholarly journals The effect of IFRS adoption on the value relevance of accounting information: evidence from South Korea

2019 ◽  
Vol 16 (2) ◽  
pp. 78-88 ◽  
Author(s):  
Do Hoon Ki ◽  
Wook Bin Leem ◽  
Jee Hoon Yuk
Keyword(s):  
South Korea ◽  
Value Relevance ◽  
Accounting Information ◽  
Financial Statements ◽  
Consolidated Financial Statements ◽  
Listed Firms ◽  
Ifrs Adoption ◽  
Accounting Numbers ◽  
Before And After ◽  
Different Characteristics

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.

Is Voluntary Disclosure Value Relevant? Evidence from Top Listed Firms in India

2021 ◽  
pp. 097226292098629
Author(s):  
Rupjyoti Saha ◽  
Kailash Chandra Kabra
Keyword(s):  
Voluntary Disclosure ◽  
Value Relevance ◽  
Stock Exchange ◽  
Market Value ◽  
Policy Implications ◽  
Positive Contribution ◽  
Listed Firms ◽  
Strategic Disclosure ◽  
Relevant Evidence ◽  
The Relationship

In view of ongoing reforms in India with emphasis on improving transparency of corporate, the present study aims to examine the influence of voluntary disclosure on the market value of India’s top-listed firms. To this end, the study uses a sample of top 100 non-financial and non-utility firms listed at Bombay Stock Exchange based on market capitalization over a 5-year period (2014–2018). To control potential endogeneity in the relationship between voluntary disclosure and firms’ market valuation, fixed effect panel data model and two-stage least squares model of estimation have been employed. The result obtained from the analysis suggests that enhanced level of voluntary disclosure significantly improves the market value of sample firms. The study further undertakes additional analysis by categorizing voluntary disclosure into its sub-components wherein the findings reveal that three components of voluntary disclosure such as corporate and strategic disclosure, forward looking disclosure and corporate governance disclosure make positive contribution towards market value of firms, while the remaining components of voluntary disclosure such as human and intellectual capital disclosure and financial and capital market disclosure do not appear to have any significant influence on the same. Overall, the finding suggests that voluntary disclosure made by sample firms is considered relevant by investors. However, value relevance of different components of voluntary disclosure varies with the nature and extent of information disclosed. The study offers some important policy implications.

IFRS Adoption and Audit Delay: The Role of Shareholders in the Audit Committee

2018 ◽  
Vol 8 (1) ◽  
pp. 325
Author(s):  
Ishaq Ahmed Mohammed ◽  
Ayoib Che-Ahmad ◽  
Mazrah Malek
Keyword(s):  
Audit Committee ◽  
Unobserved Heterogeneity ◽  
Value Relevance ◽  
Stock Exchange ◽  
Delay Model ◽  
Corporate Reporting ◽  
Ifrs Adoption ◽  
The Difference ◽  
The Relationship

This study examined the relationship between audit delay after IFRS adoption and the role of shareholders in the audit committee as well as testing the difference of pre-and post IFRS adoption periods. A sample of 101 firms with 505 firm-year observations over five year period for firms listed on the Nigeria Stock Exchange was employed for the study, utilizing data from the annual report and accounts of the sample firms. Generalized Methods of Moment (GMM) estimation was used to check the effects of unobserved heterogeneity in audit delay model, while the test of difference in R2 value for pre-and post-adoption periods was determined using Cramer’s Z-statistics. Findings indicate that audit report lag is faster with shareholders in the audit committee. The study proved that brand named auditors such as Big4 can significantly perform faster audit task than non-Big4 firms in IFRS regime. The importance of the study’s findings demonstrates statistical inference on value relevance increase based on the unique IFRS adoption in Nigeria. Thus, regulators should consider increasing the tenure of shareholders in the audit committee to enable them to become more familiar with the corporate reporting under IFRS regime.

scholarly journals 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)

2017 ◽  
Vol 5 (1) ◽  
pp. 46-52
Author(s):  
Yurniwati Yurniwati ◽  
Amsal Djunid ◽  
Nini Sumarni ◽  
Ike Pranita
Keyword(s):  
Information Asymmetry ◽  
Value Relevance ◽  
Linear Regression Analysis ◽  
Accounting Information ◽  
Asymmetry Of Information ◽  
Comprehensive Income ◽  
Other Comprehensive Income ◽  
Relationship Of ◽  
The Relationship

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.

scholarly journals Study on the Influence of CFO Characteristics on Accounting Conservatism of Listed Companies

2021 ◽  
Vol 275 ◽  
pp. 03005
Author(s):  
Miao Yu
Keyword(s):  
Economic Development ◽  
Social Economy ◽  
Accounting Information ◽  
Personal Characteristics ◽  
Listed Companies ◽  
Accounting Conservatism ◽  
Quality Of Accounting Information ◽  
The Difference ◽  
The Relationship

As the information reflection of social economy, the quality of accounting information is closely related to economic development and market operation system. And accounting conservatism is one of the important standards to measure of quality of accounting information. As the maker and executor of the financial strategy of the listed company, the CFO’s different personal characteristics will affect its choice of different accounting policies, thus affecting the accounting conservatism of the enterprise. Therefore, this paper selects CFOs of A-share listed companies in Shanghai and Shenzhen from 2016 to 2018 as research objects, respectively discusses the influence of CFO’s natural attributes and social attributes on accounting conservatism, and analyzes the moderating effect of property rights and CFO’s power on the relationship between them. The results show that the CFO’s age, tenure, education, professional skills, salary and number of part-time jobs are negatively correlated with accounting conservatism. The female CFO, shareholding and concurrent director are significantly positively correlated with accounting conservatism. The difference of property right nature and CFO power moderates the relationship between CFO characteristics and accounting conservatism to some extent. On this basis, this paper puts forward corresponding suggestions on how to improve accounting conservatism and promote economic development.

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