The relationship of accounting comparability between the profit value relevance and book value

2021 ◽  
Vol 1 (1) ◽  
pp. 71-80
Author(s):  
Sama Ojaghi ◽  
Majid Moradi ◽  
Davood Gorjizadeh
Keyword(s):  
Value Relevance ◽  
Stock Exchange ◽  
Inductive Reasoning ◽  
Book Value ◽  
Listed Firms ◽  
Removal Sampling ◽  
Accounting Comparability ◽  
Profit Value ◽  
Relationship Of ◽  
The Relationship

This research tries to investigate the comparability between the profit value relevance and book value of the listed firms in Tehran Stock Exchange. The research sample was selected by using the systematic removal sampling method by applying the research variable, 138 variables, during 2012-2019. Furthermore, this research has two hypotheses. This research is applied and the method is correlational based on nature and content. The research was conducted in the framework of deductive-inductive reasoning and panel analysis was used to analyze the hypotheses. The results of hypothesis testing showed that value relevance of profit and value relevance of book value increase with accounting comparability. Youtube link: https://youtu.be/lGbO2Co0Tyk

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.

scholarly journals Voluntary Human Capital Disclosure and Firm Value Relationship in the Listed Companies of Bangladesh: A Conceptual Overview

2020 ◽  
Vol 5 (2) ◽  
pp. 39
Author(s):  
Shamem Ara Mili ◽  
Fathyah Hashim
Keyword(s):  
Human Capital ◽  
Firm Value ◽  
Stock Exchange ◽  
Agency Conflicts ◽  
Listed Firms ◽  
Reporting Practices ◽  
Corporate Reporting ◽  
Relationship Of ◽  
The Relationship ◽  
Conceptual Overview

The aim of this paper is to incorporate relevant empirical researches and literature for extending the potentials of voluntary human capital disclosure to increase the value of the listed firms in Bangladesh. Voluntary human capital disclosure reduces information asymmetry and increases the financial lucidity of the business, and hence, could minimize agency conflicts, and satisfy employees’ and other stakeholders’ of the business. However, subsequent to a 13.8 percent drop in 2018, the broad index of the Dhaka Stock Exchange Limited lost 17.3 percent in 2019. It is among the first paper focusing on the consequence of voluntary human capital disclosures on firm value from a combination of agency theory, signaling theory, and stakeholder theory perspective. Moreover, extant literature endow with inconsistent and less evidence concerning the relationship of voluntary human capital disclosure with firm value. The present paper proposes and illustrates potential proposition for future empirical investigation in the context of an emerging economy like Bangladesh. It is also expected that the present paper would endow with further knowledge to investors, managers, and other stakeholders to upgrade firm value by means of voluntary human capital disclosure in their corporate reporting practices.

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.

Impact of Accounting Data on Stock Prices: The Case of Vietnam

2018 ◽  
Vol 8 (1) ◽  
pp. 140
Author(s):  
Hoang Thi Viet Ha ◽  
Dang Ngoc Hung ◽  
Tran Manh Dung
Keyword(s):  
Stock Prices ◽  
Stock Exchange ◽  
Accounting Data ◽  
Book Value ◽  
Listed Firms ◽  
Earnings Per Share ◽  
Accounting Numbers ◽  
The Impact ◽  
The Relationship ◽  
Exchange Data

This research is conducted for evaluating the impact of accounting numbers on stock prices of listed firms on Vietnam Stock Exchange. Data were collected from 416 listed firms for the period from 2012 to 2016. By using models of OLS, FEM, REM and GLS for evaluating the relationship between earnings per share (EPS), book value of stock (BV) and stock prices, the results show that EPS, BV have positive relationships with stock prices with the level of 48.13% basing on the model of Ohlson (1995) and on the model of Ohlson adjusted to Aboody et al. (2002). Based on the findings, some implications for investors and stakeholders have been given in the context of Vietnam.

scholarly journals Pengaruh Profitabilitas dan Ukuran Perusahaan Terhadap Nilai Perusahaan Dengan Moderasi Kebijakan Dividen: Studi Pada Perusahaan Properti, Real Estate dan Konstruksi Bangunan Yang Terdaftar di Bursa Efek Indonesia Periode 2013-2017

2020 ◽  
Vol 1 (2) ◽  
pp. 50-65
Author(s):  
Ali Imron ◽  
Desi Kurniawati
Keyword(s):  
Real Estate ◽  
Firm Size ◽  
Firm Value ◽  
Dividend Policy ◽  
Positive Impact ◽  
Stock Exchange ◽  
Book Value ◽  
Construction Companies ◽  
Relationship Of ◽  
The Relationship

This study purposed to determine the effect of profitability proxy with Earning Per Share (EPS) and firm size is proxied by logarithm natural of total assets to firm value which proxied by Price Book Value (PBV) and to find out whether dividend policy proxied by Dividend Payout Ratio (DPR) be moderateted the relationship of profitability and firm size against firm value. The population in this study were all the property, real estate and building construction companies sector listed on Indonesia Stock Exchange for 2013 -2017. The sample in this study were 9 companies out of 62 population obtained through purposive sampling method. Data analysis techniques used in this study was Moderated Regression Analysis (MRA). The results of this study is: (1) Profitability has positive and significant impact to firm value. (2) Firm size has positive impact but not significant to firm value. (3) Dividend policy are able to moderate the effect of profitability against firm value. (4) Dividend policy can not moderate the effect of firm size against firm value.

Intellectual capital disclosure and corporate market value: does board diversity matter?

2017 ◽  
Vol 7 (3) ◽  
pp. 369-398 ◽  
Author(s):  
Mutalib Anifowose ◽  
Hafiz Majdi Abdul Rashid ◽  
Hairul Azlan Annuar
Keyword(s):  
Value Relevance ◽  
Stock Exchange ◽  
Generalized Method Of Moments ◽  
Ethnic Composition ◽  
Board Diversity ◽  
Content Type ◽  
Listed Firms ◽  
The Relationship ◽  
Moderating Role

Purpose The purpose of this paper is to examine the relationship between IC disclosure and the corporate market value (CMV) of listed firms on the main board of Nigeria Stock Exchange and to test the moderating effect of religious and ethnic composition of board members on the relationship. Design/methodology/approach This study applies the signaling and upper echelons theories in formulating four hypotheses that guide the results analysis. By employing a two-step dynamic system generalized method of moments and controlling for the possible endogeneity effect on the parameters estimated for a sample of 91 listed firms on main board of Nigeria Stock Exchange, this study investigates the association of IC disclosure with CMV, namely, cost of capital and market capitalization, and the moderating role of religious and ethnic composition on such association using data over the 2010 to 2014 financial years. Findings The results show a significant positive relationship between overall IC disclosure and market capitalization and a negative impact on cost of capital, which are in line with the hypothesized propositions. The moderating effect of board diversity is also confirmed. This study contributes to recent evidence concerning the value relevance of IC information to investors and other interested stakeholders and the established moderating role of board diversity in IC disclosure-related studies. Practical implications The regulators may consider development of standards on board composition about religious and ethnic composition in order to curb the domination from same group in the board room. Those charged with governance should be concerned with the disclosure of IC information in the financial statements as it has value relevance to the investors, in line with signaling theory. Social implications The ethnic and religious composition of board members is a significant factor within the board room and needs to be given adequate consideration. Originality/value This study is the first to consider IC disclosure across whole sectors in the Nigerian economy and looks upon ethnicity and religious affiliation of boards as moderating variables. The study controls for heteroscedasticity and endogeneity issues by adopting two-step dynamic system generalized method of moments.

scholarly journals The Usefulness Of Earnings And Book Value For Equity Valuation To Kuwait Stock Exchange Participants

2011 ◽  
Vol 10 (1) ◽  
Author(s):  
Mishari Alfaraih ◽  
Faisal Alanezi
Keyword(s):  
Stock Returns ◽  
Stock Price ◽  
Value Relevance ◽  
Stock Exchange ◽  
Institutional Setting ◽  
Sources Of Information ◽  
Book Value ◽  
Listed Firms ◽  
Kuwait Stock Exchange ◽  
Alternative Sources

Motivated by the lack of research on the value relevance of accounting information in emerging markets and the unique institutional setting in Kuwait, the objective of this study is to examine the value relevance of accounting earnings and book value information produced by Kuwait Stock Exchange (KSE)-listed firms during the 1995-2006 period empirically by using two valuation models - price and returns models. The results of both models show that earnings and book value were, jointly and individually, positively and significantly related to stock price and stock returns. Interestingly, the value relevance of earnings and book value of KSE-listed firms were found to be higher than the findings observed in some developed and emerging countries. This finding could be attributed partially to the fairly limited sources of credible and useful competing information available to market participants and the lack of alternative sources of information about prospects. An important implication of this finding is that the KSE needs to develop its information environment further to become more efficient in offering a free exchange of information about companies listed on its exchange.

Intellectual capital efficiency and corporate book value: evidence from Nigerian economy

2018 ◽  
Vol 19 (3) ◽  
pp. 644-668 ◽  
Author(s):  
Mutalib Anifowose ◽  
Hafiz Majdi Abdul Rashid ◽  
Hairul Azlan Annuar ◽  
Hassan Ibrahim
Keyword(s):  
Dynamic System ◽  
Cash Flow ◽  
Intellectual Capital ◽  
Value Relevance ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Content Type ◽  
Book Value ◽  
Listed Firms

Purpose The purpose of this paper is to examine the value relevance of intellectual capital (IC) by analysing the relationship between IC efficiency (ICE) and corporate book value of listed firms on main board of Nigeria Stock Exchange. Design/methodology/approach This study applies the resource-based theory in formulating two hypotheses that guide the results analysis. By employing a two-step dynamic system generalised method of moments (GMMs), and controlling for the possible endogeneity effect on the parameters estimated, for a sample of 91 listed firms on main board of Nigeria Stock Exchange, this study investigates the association of ICE and corporate book value, namely, cash flow from operation and economic value added (EVA), using data over the 2010 to 2014 financial years. Findings The results show a significant positive relationship between overall ICE and corporate book value (cash flow from operation and EVA). This study contributes to recent evidence concerning the value relevance of IC information to investors and other interested stakeholders. Research limitations/implications The generalisation of the results to smaller firms, in the alternative securities market, may be inappropriate as study sampled listed firms on the main board of Nigerian Stock Exchange. Practical implications Those charged with governance should be concerned with the investment and management of IC as it enhances the economic value and operating cash flow in line with the resource-based theory. Originality/value This study is first to consider the ICE study across all sectors in the Nigerian economy using modified Pulic value added intellectual capital. The study controls for heteroscedasticity and endogeneity issues by adoption of two-step dynamic system GMMs.

HUBUNGAN BOARD DAN KOMITE AUDIT TERHADAP MANAJEMEN LABA

2010 ◽  
Author(s):  
Fivi Anggraini
Keyword(s):  
Corporate Governance ◽  
Moral Hazard ◽  
Earnings Management ◽  
Conflict Of Interest ◽  
Significant Relationship ◽  
Stock Exchange ◽  
Earning Management ◽  
Independent Directors ◽  
Relationship Of ◽  
The Relationship

Earnings management is the moral hazard problem of manager that adses because of the conflict of interest between the manager as agent and the stakeholder and the owner as principal. The behavior of earnings management will immediately influence the reported earning. The aims of this research at examining the relationship of board and audit committe to earnings management. The samples of this research is all of companies member Corporate Governance Perception Index (CGPI) in the years of 2003-2006 which were listed in Jakarta Stock Exchange. The results of this study show that (1) the proportion of independent directors on the board had not significant relationship to earning management, (2) competence of independent directors on the board had not significant relationship to earning management, (3) the size of board had significant relationship to earning management, (4) the proportion of independent directors on the audit committe had not significant relationship to earning management, and (5) competence of members of the audit committe had significant relationship to earning management.

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