Value Relevance of Accounting Information in Capital Markets

2017 ◽  
pp. 30-58
Author(s):  
Marianne Ojo ◽  
James A DiGabriele
Keyword(s):  
New York ◽  
Capital Markets ◽  
Value Relevance ◽  
Stock Exchange ◽  
Emerging Market ◽  
Accounting Information ◽  
Treasury Bonds ◽  
Monetary Policies ◽  
York Stock Exchange ◽  
Recent Developments

“The sell-off in US Treasury bonds in 2013 had global repercussions, impacting broad ranges of asset classes in both advanced and emerging market economies. The sell-off in 1994 is distinguished from 2003 and 2013 episodes in that, in 1994, not only did long-term rates surge, short-term rates also picked up significantly. By contrast, in both 2003 and 2013, bond market stress was confined mostly to longer maturities, although drivers of the 2003 event were different from those in 2013.” As well as analyzing and investigating recent developments in vulnerabilities and volatility on the New York Stock Exchange, this chapter investigates the topic of the value relevance of accounting information in global capital markets as a means of contributing to the topic of value relevance – and particularly highlighting the impact of monetary policies and growth rates of certain economies at a global level. It also highlights why fundamentals presently underlying present stock market volatilities differ from those of previous crises.

Financial Statement Analysis Under IFRS

2018 ◽  
pp. 696-712
Author(s):  
Yasemin Zengin Karaibrahimoglu ◽  
Gökçe Tunç
Keyword(s):  
New York ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Statement Analysis ◽  
Financial Reports ◽  
York Stock Exchange ◽  
Key Points ◽  
Recent Developments

This chapter provides a clear conceptual discussion on the recent developments in the Financial Statement Analysis (FSA). It presents how IFRSs changed the outlook of the financial reporting and the analysis and explains the key points that should be considered in FSA. Using a case study on the financial reports of Turkcell, a communication and technology company listed both on the New York Stock Exchange (NYSE) and the Borsa Istanbul (BIST), the differences between IFRSs and U.S. GAAP accounting standards in the measurement of overall financial performance and position are documented. Overall findings show that IFRSs change the appearance of financial statements significantly. While IFRS reporting extenuates “the bottom line” it accentuates total assets with higher shareholder equity compared to U.S. GAAP. This chapter might be a practical guide for users, preparers, and regulators to understand the cosmetic impact of IFRSs on financial statements.

Long-Run Performance of Emerging Market ADRs: Evidence From Issues Listed on the New York Stock Exchange From 1990 Through 2009

2013 ◽  
Vol 5 (1) ◽  
pp. 41-54 ◽  
Author(s):  
Mark Schaub
Keyword(s):  
New York ◽  
Stock Exchange ◽  
Emerging Market ◽  
New York Stock Exchange ◽  
Holding Period ◽  
Market Index ◽  
Long Run ◽  
York Stock Exchange ◽  
Market Sample ◽  
Depository Receipts

This article examines the three-year monthly aftermarket returns of emerging market firm equities traded on the New York Stock Exchange as American Depository Receipts (ADRs). Excess return results are broken down by the type of issue (IPO versus SEO) and the date of issue (those issued in the 1990s versus the 2000s). The total emerging market sample of 193 ADRs significantly outperformed the S&P 500 index by 8.5 percent for the three-year holding period; however, those issued before 2000 underperformed the index by nearly 18 percent while those listed after January 1, 2000 outperformed the index by nearly 41 percent. SEOs outperformed the market index by 32 percent while IPOs underperformed by 2 percent. Both portfolios (IPOs and SEOs) significantly outperformed the market for issues that were listed in the 2000s.

A comparative study on strategy disclosure between emerging markets and developed markets

2019 ◽  
Vol 11 (1) ◽  
pp. 2-22
Author(s):  
Morungwa Lumka Phala ◽  
Yaeesh Yasseen ◽  
Nirupa Padia ◽  
Waheeda Mohamed
Keyword(s):  
New York ◽  
Stock Exchange ◽  
Emerging Market ◽  
Listed Companies ◽  
Annual Reports ◽  
New York Stock Exchange ◽  
Content Type ◽  
Johannesburg Stock Exchange ◽  
York Stock Exchange ◽  
Market Sample

Purpose This study aims to compare the extent of voluntary strategy disclosure in the annual/integrated reports of listed companies in an emerging market with the extent of strategy disclosure in the annual/integrated reports of listed companies in a developed market. Design/methodology/approach A developed market sample that was made up of the top 50 companies on the New York Stock Exchange and the Australian Stock Exchange was compared to an emerging market sample that was made up of the top 50 companies on the Johannesburg Stock Exchange and the Bombay Stock Exchange. The comparison was conducted by scoring the amount of strategy disclosure reported in the annual/integrated reports of the companies for the years 2011, 2012 and 2013. Findings The emerging market companies had average to good strategy disclosures in their annual reports, whereas the annual reports of companies in the developed market showed low strategy disclosure. Originality/value This study expanded upon the limited research available on strategy disclosure by comparing the extent of strategy disclosures in two developmental markets (the developed and emerging market).

Financial Statement Analysis under IFRS

2014 ◽  
pp. 238-255
Author(s):  
Yasemin Zengin Karaibrahimoglu ◽  
Gökçe Tunç
Keyword(s):  
New York ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Financial Statements ◽  
Financial Statement ◽  
Financial Statement Analysis ◽  
Financial Reports ◽  
York Stock Exchange ◽  
Key Points ◽  
Recent Developments

This chapter provides a clear conceptual discussion on the recent developments in the Financial Statement Analysis (FSA). It presents how IFRSs changed the outlook of the financial reporting and the analysis and explains the key points that should be considered in FSA. Using a case study on the financial reports of Turkcell, a communication and technology company listed both on the New York Stock Exchange (NYSE) and the Borsa Istanbul (BIST), the differences between IFRSs and U.S. GAAP accounting standards in the measurement of overall financial performance and position are documented. Overall findings show that IFRSs change the appearance of financial statements significantly. While IFRS reporting extenuates “the bottom line” it accentuates total assets with higher shareholder equity compared to U.S. GAAP. This chapter might be a practical guide for users, preparers, and regulators to understand the cosmetic impact of IFRSs on financial statements.

The impact of institutional ownership on the value relevance of accounting information: evidence from Egypt

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Diab ◽  
Samir Ibrahim Abdelazim ◽  
Abdelmoneim Bahyeldin Mohamed Metwally
Keyword(s):  
Value Relevance ◽  
Stock Exchange ◽  
Emerging Market ◽  
Accounting Information ◽  
Institutional Ownership ◽  
Analysis Data ◽  
Content Type ◽  
Corporate Size ◽  
Institutional Owners ◽  
The Impact

Purpose This paper aims to examine the value relevance (VR) of accounting information (AI) presented by Egyptian listed non-financial companies. Further, the study investigates the influence of institutional ownership on the value relevance of AI in a developing market, namely, the Egyptian market. Design/methodology/approach The study uses data from 2014 to 2017 with a total of 248 observations and analyses the data using regression analysis. Data are collected from the nonfinancial companies listed on the Egyptian Stock Exchange. Findings The authors found that the AI reported by the Egyptian listed non-financial companies is value relevant. Regarding the influence of institutional ownership, it is found to significantly impact the VR of AI reported by the sample companies. This model investigated the effect of corporate size and financial leverage as controlling variables and found that they have an insignificant influence on the VR of AI. Originality/value The current study findings enrich the literature by enhancing the understanding regarding institutional owners’ impact on corporate value. Further, bringing evidence from an emerging market can have implications for accounting researchers interested in addressing other emerging markets with similar contextual and institutional environments.

Value Relevance of Accounting Information in Capital Markets

2017 ◽  
pp. 90-101
Author(s):  
James A. Rossi
Keyword(s):  
Comparative Analysis ◽  
Capital Markets ◽  
Stock Markets ◽  
Value Relevance ◽  
Accounting Information ◽  
Recent Developments ◽  
Global Stock Markets ◽  
Goals And Objectives ◽  
Qualitative Characteristics ◽  
Global Stock

By way of reference to a comparative analysis between three selected jurisdictions from the Middle East, Africa and Asia, this chapter aims to investigate the trends in value relevance of accounting information in these stock markets and exchanges. Further, amongst other goals and objectives, this chapter also seeks to illustrate why in light of recent developments which have resulted in decline of reliability - as a valued attribute, relevance and reliability still constitute fundamental characteristics which are required in the development of global stock markets and economies. It consolidates this aim in view of recent IASB and FASB's initiatives and the resulting framework which categorizes understandability, comparability, timeliness and verifiability as enhancing qualitative characteristics of accounting information.

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