scholarly journals VALUE RELEVANCE LABA DAN ARUS KAS DENGAN PENDEKATAN PORTFOLIO-RETURN

2006 ◽  
Vol 6 (1) ◽  
pp. 1 ◽  
Author(s):  
Dwi Fitri Puspa
Keyword(s):  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Listed Companies ◽  
Cash Flows ◽  
Equity Valuation ◽  
Sample Period ◽  
Earnings Information ◽  
Portfolio Return ◽  
Is Value

<p class="Style1"><em>The value relevance literature is related to the usefulness of financial </em><em>statement asan information in equity valuation. This study is conducted </em><em>to measure the value relevance of earnings and cash flows by using the </em><em>portfolio return approach. the study is to examine whether the proportion </em><em>of all information in security returns that are captured by the accounting-</em><em>based measures in earnings information are higher than in cash flows </em><em>information. The sample covers listed companies in Jakarta Stock Exchange in 1991. The number of samples that fulfills the criteria are 79 companies and the sample period was 1996 to 2001. The findings indicate that the value relevance of accounting information in terms of earnings and cash flows is value-relevant. Furthermore the findings show that the value relevance of earnings information is higher than that of cash flows information. The knowledge of the change in earnings (cash flows) earns 45.68% (16.89%) of these returns.</em></p><p class="Style1"><strong><em>Keywords: </em></strong><em>value relevance; portfolio return; earnings; cash flows</em></p>

scholarly journals A comparison of the value relevance of interim and annual financial statements

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Mbalenhle Zulu ◽  
Marna De Klerk ◽  
Johan G.I. Oberholster
Keyword(s):  
Value Relevance ◽  
Accounting Information ◽  
Financial Statements ◽  
Sample Period ◽  
Book Value ◽  
Incremental Value ◽  
Annual Reporting ◽  
Interim Earnings ◽  
A Company ◽  
Is Value

Background: This study tests the value relevance of interim accounting information. The study also explores whether the value relevance of annual and interim financial statements has changed over time.Aim: It explores whether the value relevance of interim financial statements is higher than the value relevance of annual financial statements. Finally, it investigates whether accounting information published in interim and annual financial statements has incremental value relevance.Setting: Data for the period from 1999 to 2012 were collected from a sample of non-financial companies listed on the Johannesburg Stock Exchange.Method: The Ohlson model to investigate the value relevance of accounting information was used for the study.Results: The results show that interim book value of equity is value relevant while interim earnings are not. Interim financial statements appear to have higher value relevance than annual financial statements. The value relevance of interim and annual accounting information has remained fairly constant over the sample period. Incremental comparisons provide evidence that additional book value of equity and earnings that accrue to a company between interim and annual reporting dates are value relevant.Conclusion: The study was conducted over a long sample period (1999–2012), in an era when a technology-driven economy and more timely reporting media could have had an effect on the value relevance of published accounting information. To the best of our knowledge, this is the first study to evaluate and compare the value relevance of published interim and annual financial statements.

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.

scholarly journals Relevansi Nilai Informasi Akuntansi Pada Laba, Nilai Buku, dan Arus Kas Operasi: Kasus di Perbankan Indonesia

2020 ◽  
Vol 3 (2) ◽  
pp. 119
Author(s):  
Sofyan Hadinata
Keyword(s):  
Stock Prices ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Cash Flows ◽  
Least Square ◽  
Panel Data Regression ◽  
Statistical Effect ◽  
Variable Sampling ◽  
Regression Techniques

<p class="bdabstract">This study aims to examine the relationship between capital markets and accounting information in Indonesian banking. Specifically, this study examines the value relevance of earnings, book values, and operating cash flows. Using a sample of banks listed on the Indonesia Stock Exchange from 2014 to 2018, this study accommodates the documented accounting information in the context of developing markets using stock prices of four months after year-end as a dependent variable. Sampling using a purposive sampling method. This research obtained 35 companies used in this study sample. This study uses panel data regression techniques with the Generalized Least Square (GLS) analysis approach. This study indicates that earnings and book value statistically have a positive effect on stock prices. Meanwhile, operating cash flow has no statistical effect on stock prices. This study also shows that earnings more value-relevant than other variables.</p>

scholarly journals Value Relevance of Accounting Information in the Botswana Listed Companies

2020 ◽  
Vol 13 (5) ◽  
pp. 46
Author(s):  
Christian J. Mbekomize ◽  
Selinkie Popo
Keyword(s):  
Market Share ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Cash Flows ◽  
Least Square ◽  
Share Price ◽  
Annual Reports ◽  
Book Value ◽  
Share Prices

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 &ndash; 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.

scholarly journals Value Relevance of Accounting Information in the Presence of Earnings Management

2020 ◽  
Vol 10 (2) ◽  
pp. 321
Author(s):  
Melinda Lydia Nelwan ◽  
Christo Simatupang ◽  
Billy Ivan Tansuria
Keyword(s):  
Time Series ◽  
Time Series Analysis ◽  
Earnings Management ◽  
Value Relevance ◽  
Accounting Information ◽  
Discretionary Accruals ◽  
Cash Flows ◽  
Book Value ◽  
Share Prices ◽  
Is Value

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.

Predictive view of the value relevance of earnings in India

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hajam Abid Bashir ◽  
Manish Bansal ◽  
Dilip Kumar
Keyword(s):  
Capital Investment ◽  
Stock Return ◽  
Value Relevance ◽  
Stock Exchange ◽  
Predictive Ability ◽  
Cash Flows ◽  
Data Set ◽  
Content Type ◽  
Uniform Sample ◽  
Reported Earnings

Purpose This study aims to examine the value relevance of earnings in terms of predicting the value variables such as cash flow, capital investment (CI), dividend and stock return under the Indian institutional settings. Design/methodology/approach The study used panel Granger causality tests to examine causality relationships among variables and panel data regression models to check the statistical associations between earnings and value variables. Findings Based on a data set of 7,280 Bombay Stock Exchange-listed firm-years spanning over ten years from March 2009 to March 2018, the results show higher sensitivity of earnings toward cash flows, CI, divided and stock return and vice-versa. Further, the findings deduced from the empirical results demonstrate that earnings are positively related to value variables. Overall, the results established that earnings are value-relevant and have predictive ability to forecast the value variables that facilitate investors in portfolio valuation. The results are consistent with the predictive view of the value relevance of earnings. Several robustness checks confirm these results. Originality/value This study brings new empirical evidence from a distinct capital market, India, and provides a new facet to the value relevance debate in terms of its prediction view. The study is among earlier attempts that jointly measure the ability of earnings in forecasting different value variables by taking a uniform sample of firms at the same period. Hence, the study provides a comprehensive view of the predictive ability of reported earnings.

scholarly journals Kidas Model, Cash Flow, and Size Case of Palestine

2021 ◽  
Vol 16 (4) ◽  
pp. 48
Author(s):  
Tamer Bahjat Sabri
Keyword(s):  
Cash Flow ◽  
Stock Exchange ◽  
Listed Companies ◽  
Cash Flows ◽  
T Test ◽  
Financial Statement ◽  
S Model

This paper examines the nature of interaction between Kida&rsquo;s model, the cash flows (operating, investing, financing) and the size. It covers the period between 2013 and 2014 based on annual financial statement of Palestinian listed companies in Palestine Stock Exchange. In order to test the hypotheses of the study, the researcher used independent samples T-test. The results show that we accept all null hypotheses, so Kida&rsquo;s model does not distinguish between high and low cash flow (operating, investing, financing) and the size. Other results show that the model is unable sometimes to predict the failure of companies.

scholarly journals Association between Accounting Numbers and Value of Food and Beverages Firms in Nigeria

2015 ◽  
Vol 7 (12) ◽  
pp. 245
Author(s):  
Nyor Terzungwe ◽  
Nasiru Rabiu
Keyword(s):  
Value Relevance ◽  
Stock Exchange ◽  
Investment Decision ◽  
Market Price ◽  
Accounting Information ◽  
Financial Statements ◽  
Annual Reports ◽  
Market Values ◽  
Food And Beverages ◽  
Accounting Numbers

<p>The degree of statistical relationship between the contents of financial statements and market price of equity is what is termed Value relevance of accounting information. It explains stock market measures using financial information variables and it is a very useful guide to investors in pricing of shares. This study examines the extent of association between accounting information variables of earnings, dividend and book value of equity and market value of listed Food and Beverages firms in Nigeria. Data were collected from the published annual reports of the sampled firms and their market values obtained from the official daily list of the Nigerian Stock Exchange (NSE) over a period of 10 years (2001-2010). Using multivariate regression as technique for data analysis, the study established that accounting information of Food &amp; Beverages companies in Nigeria is value relevant. Accordingly, the study recommends the use of financial statements figures of Food and Beverages firms for investment decision.</p>

Value Relevance of DuPont Identity

2017 ◽  
Vol 7 (2) ◽  
pp. 48
Author(s):  
Pradeep Kumar Gupta
Keyword(s):  
Stock Returns ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Empirical Support ◽  
Operating Efficiency ◽  
Valuation Theory ◽  
Financial Leverage ◽  
Return On Equity ◽  
Use Efficiency

This study provides an empirical support to the relevance of very prevalent and well-established almost a century ago the DuPont Identity in the context of India, one of big 10 emerging markets (Garten, 1997). The DuPont Identity, a familiar form of financial statement analysis (Soliman, 2008) for use in equity valuation (Nissim and Penman, 2001), decomposes the return on equity (ROE) into three multiplicative components: net profit margin (operating efficiency), assets turnover ratio (asset use efficiency) and equity multiplier (financial leverage). The present study is based on the valuation theory which considers the viewpoint of equity investors to empirical investigate the value relevance of accounting information (Beisland, 2009). In this study, value relevance of three measures of accounting information used in the DuPont Identity is investigated for 228 manufacturing firms listed in National Stock Exchange (NSE) of India over a period of ten years from 2006-07 to 2015-2016. The findings indicate that the firms should focus on asset use efficiency and financial leverage components of DuPont Identity since a statistically significant impact of these two components on the stock returns is found. The strategic use of asset efficiency and financial leverage inevitably ensures the operating efficiency of the firms. This empirical investigation is an addition to the value relevance literature with an important insight to the firms and the participants of stock market about the usefulness of DuPont Identity in the context of India.

The value relevance of accounting information in the MENA region

2019 ◽  
Vol 17 (3) ◽  
pp. 519-536 ◽  
Author(s):  
Doaa El-Diftar ◽  
Tarek Elkalla
Keyword(s):  
Regression Model ◽  
Developing Economies ◽  
Negative Impact ◽  
Value Relevance ◽  
Accounting Information ◽  
Mena Region ◽  
Content Type ◽  
Ifrs Adoption ◽  
The Impact ◽  
Is Value

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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