scholarly journals Sustainability Reporting and Value Relevance of Financial Statements

2018 ◽  
Author(s):  
Bambang Sutopo ◽  
Sebastian Kot ◽  
Arum Kusumaningdyah Adiati ◽  
Lina Nur Ardila
Keyword(s):  
Stock Price ◽  
Value Relevance ◽  
Sustainability Reporting ◽  
Positive Association ◽  
Financial Statements ◽  
Relevant Information ◽  
Book Value ◽  
Natural Logarithm ◽  
Earnings Per Share

This study examines whether information about the winners of the Sustainability Reporting Award (SRA) contributes to the usefulness of the information in the financial statements. This study used a sample consisting of 110 winners of SRA (SRA firms) and 110 companies that did not receive SRA (non-SRA firms) from 2008 to 2016. The study found that earnings per share (EPS), book value per share (BVPS), and earnings per share change (EPSC) are value relevant information. Results of comparison between SRA firms and non-SRA fimrs, this study found that EPS positive association with stock price and with returns for SRA firms is higher than that for non-SRA firms. Findings of this study also show that, value relevance of BVPS for non-SRA firms is higher than that for SRA firms. When mesures of Price and BVPS are transformed into natural logarithm, the value relevance of BVPS for SRA firms is higher than that for non-SRA firms. Thus, the results are sensitive to measures of the variables. The findings of this study indicate that information about the winners of SRA contributes to the usefulness of financial statements.

Does Fair Value Accounting Provide More Useful Financial Statements than Current GAAP for Banks?

2018 ◽  
Vol 93 (6) ◽  
pp. 257-279 ◽  
Author(s):  
John M. McInnis ◽  
Yong Yu ◽  
Christopher G. Yust
Keyword(s):  
Measurement Error ◽  
Value Relevance ◽  
Financial Statements ◽  
Relevant Information ◽  
Fair Value ◽  
Financial Instruments ◽  
Fair Value Accounting ◽  
Book Value ◽  
Gains And Losses ◽  
Relevant Measurement

ABSTRACT Standard setters contend that fair value accounting yields the most relevant measurement for financial instruments. We examine this claim by comparing the value relevance of banks' financial statements under fair value accounting with that under current GAAP, which is largely based on historical costs. We find that the combined value relevance of book value of equity and income under fair value is less than that under GAAP. We also find that fair value income is less value-relevant than GAAP income because of the inclusion of transitory unrealized gains and losses in fair value income. More surprisingly, we find that book value of equity under fair value is not more value-relevant than under GAAP, due both to divergence between exit value and value-in-use and to measurement error in fair value estimates. Overall, our results suggest that financial statements under fair value accounting provide less relevant information for bank valuation than financial statements under current GAAP.

The Value Relevance of Non-Financial Reporting in Determining the Market Value of Equity

2021 ◽  
Vol 19 (162) ◽  
pp. 320-336
Author(s):  
Elena NECHITA ◽  
Keyword(s):  
Financial Reporting ◽  
Value Relevance ◽  
Stock Exchange ◽  
Market Value ◽  
Sustainability Reporting ◽  
Relevant Information ◽  
Net Income ◽  
Linear Regression Models ◽  
Book Value ◽  
The Impact

The value relevance of non-financial reporting is a topic of interest in the academic literature, the results of empirical research being often contradictory. In this context, the research objective is analysing the extent to which the disclosure of non-financial information related to sustainable development in the contents of sustainability reports published by companies listed on the regulated market of the Bucharest Stock Exchange (BSE) is influencing their market value. To conduct the analysis, the present study involves the application of multiple linear regression models developed based on the Ohlson (1995) model for a sample of 34 companies listed on BSE between 2015-2019, forming a number of 166 firm-year observations. The research methodology is based on the association between the firm market value and its equity book value, as well as its net income and other relevant information. Therefore, the value relevance is investigated through their impact on the market value. The findings emphasise an increase in relevance in terms of the influence exerted on the market value of capital as a result of reporting on sustainability issues. Moreover, the study highlights an increase in the impact of equity book value and net income on firms’ market value in the period after the adoption of Directive 2014/95/EUD (2017-2019), compared to the previous period (2015-2016). This research complements the literature in the field of sustainability reporting and value relevance, providing empirical evidence on the importance of publishing nonfinancial information in relation to their market value impact.

scholarly journals The Difference between Stock Prices before and after Implementation of International Financial Reporting Standards

2017 ◽  
Vol 6 (4) ◽  
pp. 285
Author(s):  
Shu-Ling Hsu
Keyword(s):  
Financial Reporting ◽  
Capital Market ◽  
Stock Prices ◽  
Value Relevance ◽  
Financial Statements ◽  
Reporting Standards ◽  
Book Value ◽  
Financial Reporting Standards ◽  
Earnings Per Share ◽  
Before And After

Following the trend of capital market globalization, many countries have begun to use unified accounting standards. The resulting, financial statements are consistent and can thus attract foreign investment, and reduce the costs of multinational companies with regard to preparing financial statements. After the implementation of the International Financial Reporting Standards (IFRS), the earnings and book value of the shareholders’ equity are more relevant to stock prices, and this is also the case in Taiwan. Because the financial statements are different before and after incorporating IFRS, this has had a significant influence in the Taiwanese financial industry. This study analyzes and explains the impacts of the earnings and book value of equity on stock prices. We take a sample of financial firms in the years 2012 and 2013 for empirical research, and the results show that the earnings per share and book value of equity have a positive and significant impact on stock prices, with the earnings per share being most significant. The results also support the hypothesis proposed in this paper: There is a decline in the value relevance of earnings, but an increase in the value relevance of book value of shareholders’ equity, after implementation of IFRS. This implies the implementation of IFRS has valuable relevant information for capital market investments.

scholarly journals Value-Relevance of Accounting Information: An Empirical Investigation in Certain European Stock Exchanges

2019 ◽  
Vol 11 (9) ◽  
pp. 75
Author(s):  
Yohanes Indrayono
Keyword(s):  
Stock Price ◽  
Empirical Investigation ◽  
Value Relevance ◽  
Accounting Information ◽  
Linear Analysis ◽  
Stock Exchanges ◽  
Book Value ◽  
Earnings Per Share

This study accommodates the value-relevance of accounting information based on a sample of 165 firms listed in one of the following European stock exchanged: CAC 40, BEL 20, DAX 30, FTSE MIB 40 and IBEX 35 Stock Exchanges for the period 2013-2015. This study uses information about the accounting method of recognizing the accounting value-relevance. This study applied linear analysis-regression to investigate the accounting value-relevance information on one hundred sixty-five firms during the period of three years. This study suggests that the accounting information are value-relevant on all the observed stock exchanges. Results of the study indicates that earnings per-share and book value per-share were found to partially and simultaneously affect positively the firm stock price.

scholarly journals The Combined Effects of Financial Derivatives and Discretionary Accruals on the Value Relevance of Earnings and the Book Value of Equity

2015 ◽  
Vol 17 (2) ◽  
pp. 179 ◽  
Author(s):  
Etty Murwaningsari ◽  
Sidharta Utama ◽  
Hilda Rossieta
Keyword(s):  
Value Relevance ◽  
Positive Association ◽  
Wald Test ◽  
Discretionary Accruals ◽  
Financial Derivatives ◽  
Combined Effects ◽  
Price Model ◽  
Negative Effects ◽  
Book Value ◽  
Sfas 133

This study aimed to understand (1) the association between the use of discretionary accruals and financial derivatives, taking into consideration the implementation of revised PSAK 55 (1999), which was adopted from SFAS 133; (2) the combined effects of derivatives and discretionary accruals on the value relevance of earnings and equity. The analysis used panel data regressions and the Wald test over the period from 2001-2008. The results showed a positive or complementary association between derivatives and discretionary accruals. The positive association implied that managers tended to intensify the use of discretionary accruals to offset a higher use of derivatives. Price and return models demonstrated negative significant effects of derivatives on the value relevance of earnings. The return model showed negative significant effects of discretionary accruals on the value relevance of earnings but negative effects on the value relevance of equity with the price model.

scholarly journals RELEVANSI NILAI INFORMASI AKUNTANSI ALTERNATIF SERTA IMPLIKASINYA TERHADAP PROSES PENGAMBILAN KEPUTUSAN INVESTASI DENGAN MENGGUNAKAN SEQUENTIAL EXPLANATORY MIXED METHOD

2020 ◽  
Vol 3 (1) ◽  
pp. 87
Author(s):  
Mada Purwanto Wahyu Nugroho ◽  
Ahmad Syifaudin
Keyword(s):  
Mixed Method ◽  
Stock Prices ◽  
Stock Price ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Financial Statements ◽  
Sources Of Information ◽  
Sequential Explanatory Mixed Method ◽  
Sequential Explanatory

Distortion of information is one of the inherent accounting risks in financial statements. Financial statements are one of the fundamental sources of information that can be used in investment decision making in the Indonesia stock exchange. If investors use this information, then investors also have the same risk that is the distortion of information contained in financial statements. This research tries to test whether stock prices can be more explained through alternative accounting information or information contained in financial statements. This research was conducted using a sequential explanatory mixed method. Using data on companies listed in the Business 27 index, tested using path analysis through multiple regression models, the results of this research indicate that alternative accounting information has not been able to explain variations in stock price changes compared to accounting information contained in financial statements. Meanwhile, the results of the analysis using qualitative data indicate there is a match between the results of quantitative analysis and qualitative analysis. Keywords: Value Relevance; Alternative Accounting Information; Investment Decisions

scholarly journals ANALISIS PENGARUH BEBERAPA VARIABEL FUNDAMENTAL KEUANGAN PERUSAHAAN TERHADAP HARGA SAHAM PERUSAHAAN TELEKOMUNIKASI YANG TERCATAT DI BURSA EFEK JAKARTA

2018 ◽  
Vol 10 (3) ◽  
pp. 307-334
Author(s):  
Rajio Suwahyono ◽  
Hening Widi Oetomo
Keyword(s):  
Stock Price ◽  
Financial Statements ◽  
Profit Margin ◽  
Financial Ratios ◽  
Debt Ratio ◽  
Information Need ◽  
Current Ratio ◽  
Book Value ◽  
Operating Profit ◽  
Net Profit

The users of financial information need financial statements of company to analyze their financial conditions and performances. Financial ratios are useful measure for predicting the stock price. The study focused on the usefull of financial ratios in predicting stock price. The aim of the study is to examine whether  financial statements of company that are price earning ratio, price to book value, current ratio, debt to equity ratio, debt ratio, operating profit margin, net profit margin, total assets turnover, and return on asset simultaneously can influence the stock price and which ratios, partially can influence the stock price. The sample of this study is the telecommunication companies that listed in Jakarta Stock Exchange. Using purposive sampling, there are two companies that become sample that are PT Telekomunikasi Indonesia Tbk and PT Indosat Tbk. The study period is 10 years (1994 up to 2004). The data were analysed by multiple linier regression.The study show that financial statements of company that are price earning ratio, price on book value, current ratio, debt ratio, operating profit margin, net profit margin, and total assets turnover  simultaneously can influence the stock price. Partially price on book value, current ratio dan total asset turnover influence the stock price.

scholarly journals Informasi Akuntansi dan Harga Saham Perusahaan LQ45

2019 ◽  
Vol 30 (1) ◽  
pp. 32
Author(s):  
Dwi Hartini Rahayu
Keyword(s):  
Panel Data ◽  
Stock Price ◽  
Accounting Information ◽  
Data Set ◽  
Book Value ◽  
Independent Variables ◽  
Earnings Per Share ◽  
Operating Cash Flow ◽  
Relationship Of ◽  
Positive Effect

This paper examine relationship of accounting information and stock price of LQ45 firms. Earnings per share (EPS), book-value per share (BVPS) and net operating cash flow per share (NOCFPS) are used as independent variables and stock price as dependent variable.  Hypothesis was tested using balanced panel data set of 23 listed companies included in the LQ45 index during 2013-2017. The result of this study shows that EPS and NOCFPS has a positive effect on stock price, while there is no evidence that BVPS has effect on stock price.

scholarly journals PENGARUH RASIO KEUANGAN TERHADAP HARGA SAHAM (STUDI PADA PERUSAHAAN SEKTOR PERTAMBANGAN MINYAK YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2014-2018)

2021 ◽  
Vol 4 (2) ◽  
pp. 187-197
Author(s):  
Sulis Tiono ◽  
Bambang Sugeng Dwiyanto
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Financial Ratios ◽  
Coefficient Of Determination ◽  
Mining Sector ◽  
Return On Equity ◽  
Book Value

Stock price fluctuations are natural and almost occur in all companies in various sectors, including companies in the oil mining sector so that price changes affect the company's financial performance and stock prices which can be analyzed fundamentally using financial ratios to aspects in the financial statements. The framework of this research is to analyze the effect of financial ratios on stock prices. The population and sample used are oil mining sector companies listed on the Indonesia Stock Exchange 2014-2018. The sampling method used is purposive sampling or judgmental sampling. Sources of data used are secondary data in the form of financial statements. The tool used for data collection is through the method of observation and analysis of the company's financial statements. The results showed, based on the t test value, stock prices were positively influenced by Return on Equity (ROE), Book Value (BV) and Price to Book Value (PBV), while negatively influenced by Debt To Equity Ratio (DER) and Net Profit. Margins (NPM). Based on the F test value, stock prices are positively influenced by ROE, DER, NPM, Earnings Per Share (EPS), BV, and PBV. Based on the coefficient of determination test (R2), stock prices are strongly influenced by ROE, DER, NPM, BV, and PBV by 91.5% and influenced by other variables by 8.5%.

scholarly journals ANALISIS PENGARUH BEBERAPA VARIABEL FUNDAMENTAL KEUANGAN PERUSAHAAN TERHADAP HARGA SAHAM PERUSAHAAN TELEKOMUNIKASI YANG TERCATAT DI BURSA EFEK JAKARTA

2017 ◽  
Vol 10 (3) ◽  
pp. 307
Author(s):  
Rajio Suwahyono Rajio Suwahyono ◽  
Hening Widi Oetomo
Keyword(s):  
Stock Price ◽  
Financial Statements ◽  
Profit Margin ◽  
Financial Ratios ◽  
Debt Ratio ◽  
Information Need ◽  
Current Ratio ◽  
Book Value ◽  
Operating Profit ◽  
Net Profit

The users of financial information need financial statements of company to analyze their financial conditions and performances. Financial ratios are useful measure for predicting the stock price. The study focused on the usefull of financial ratios in predicting stock price.The aim of the study is to examine whether  financial statements of company that are price earning ratio, price to book value, current ratio, debt to equity ratio, debt ratio, operating profit margin, net profit margin, total assets turnover, and return on asset simultaneously can influence the stock price and which ratios, partially can influence the stock price. The sample of this study is the telecommunication companies that listed in Jakarta Stock Exchange. Using purposive sampling, there are two companies that become sample that are PT Telekomunikasi Indonesia Tbk and PT Indosat Tbk. The study period is 10 years (1994 up to 2004). The data were analysed by multiple linier regression.The study show that financial statements of company that are price earning ratio, price on book value, current ratio, debt ratio, operating profit margin, net profit margin, and total assets turnover  simultaneously can influence the stock price. Partially price on book value, current ratio dan total asset turnover influence the stock price.

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