The Value Relevance and Information Content of Cash and Stock Dividends in China

2013 ◽  
Author(s):  
Elisabeth Dedman ◽  
Wei Jiang ◽  
Andrew W. Stark
Keyword(s):  
Information Content ◽  
Value Relevance ◽  
Stock Dividends

The value relevance and information content of cash and stock dividends in China

2015 ◽  
Vol 23 (7-9) ◽  
pp. 648-673 ◽  
Author(s):  
Elisabeth Dedman ◽  
Wei Jiang ◽  
Andrew Stark
Keyword(s):  
Information Content ◽  
Value Relevance ◽  
Stock Dividends

The Impact of Different Accounting Reporting Methods on the Informativeness of Research and Development Costs: IFRS Compared to U.S. GAAP

2016 ◽  
Vol 19 (04) ◽  
pp. 1650025 ◽  
Author(s):  
Michael T. Dugan ◽  
John E. McEldowney ◽  
Elizabeth H. Turner ◽  
Clark M. Wheatley
Keyword(s):  
Research And Development ◽  
Information Content ◽  
Direct Effect ◽  
Indirect Effect ◽  
Value Relevance ◽  
Operating Income ◽  
Development Costs ◽  
Before And After ◽  
The Impact

In this paper, we examine the information content and value relevance of research and development (R&D) costs before and after the SEC eliminated the 20-F reconciliation to U.S. GAAP for Foreign Public Issuers (FPIs). Prior to the elimination both FPIs and U.S. firms experienced an increase in the indirect effect of R&D on operating income. After the requirement was eliminated, the direct effect increased for FPIs and the indirect effect decreased. This is in contrast to U.S. firms who experienced a continued increase in the indirect effect. This shift indicates there was a loss of informativeness in the R&D disclosures for FPIs.

The incremental information content of audit opinion

2016 ◽  
Vol 17 (2) ◽  
pp. 139-169 ◽  
Author(s):  
Panayiotis Tahinakis ◽  
Michalis Samarinas
Keyword(s):  
Stock Returns ◽  
Information Content ◽  
Value Relevance ◽  
Future Research ◽  
Content Type ◽  
Audit Opinion ◽  
Valuation Model ◽  
A Value ◽  
Incremental Information ◽  
Firm Data

Purpose – The purpose of this paper is to examine the incremental information content of audit opinion while considering opinion determinants, such as auditor and auditee size, or a firm’s financial state. Design/methodology/approach – A market valuation model is employed using US firm data collected over 30 years. The model relates stock returns to earnings and incorporates as additional variables auditors’ opinion types, opinion determinants and their interactions with audit expression. Findings – The findings suggest that audit opinion has a significant market impact. The estimated positive or negative information content of the audit opinion types is associated with certain opinion determinants, such as auditor and auditee size and a firm’s financial state. Research limitations/implications – Additional firm-year observations regarding certain opinion qualifications could benefit future research. Practical implications – This study offers useful insights by demonstrating the importance of auditing profession to the users of financial statements. It examines investors’ perception of each audit opinion type and the conditions under which this expression has the most serious effects. The results demonstrate the role of audit opinion and its cause-effect relationship with various economic events, allowing regulators not only to track the efficiency of various audit policy changes but also act preventively and amend the regulatory framework. Originality/value – This paper empirically supports the significance of the auditing process and audit opinions by examining investor perceptions. It employs a value relevance model, in contrast to market-based research that adopts an event study methodology.

scholarly journals Does stock price synchronicity effect information content of reported earnings? Evidence from the MENA region

2016 ◽  
Vol 6 (3) ◽  
pp. 43-49 ◽  
Author(s):  
Omar Farooq ◽  
Khondker Aktaruzzaman
Keyword(s):  
Information Content ◽  
Stock Price ◽  
Value Relevance ◽  
Information Environment ◽  
Governance Mechanisms ◽  
Mena Region ◽  
High Quality ◽  
Stock Price Synchronicity ◽  
Reported Earnings ◽  
Traditional Governance

This paper documents the effect of stock price synchronicity on the value relevance of reported earnings in the MENA region during the period between 2009 and 2013. Our results show that the information content of reported earnings increases with increase in stock price synchronicity. We document higher impact of earnings on returns for firms with higher stock price synchronicity. We argue that firms with high synchronicity have better information environment. As a result, these firms disclose information that is of high quality. We also show that information conveyed through stock price synchronicity is more important than information conveyed through traditional governance mechanisms.

Information Content and Value Relevance of Depreciation: A Cross-Industry Analysis

2010 ◽  
Vol 85 (1) ◽  
pp. 227-260 ◽  
Author(s):  
Sok-Hyon Kang ◽  
Yuping Zhao
Keyword(s):  
Information Content ◽  
Value Relevance ◽  
Predictive Ability ◽  
Performance Measure ◽  
Net Income ◽  
The Real Estate ◽  
Funds From Operations ◽  
Capital Intensive ◽  
Is Value ◽  
Economic Depreciation

ABSTRACT: Funds from Operations (FFO) is the prevailing performance measure in the Real Estate Investment Trust (REIT) industry. However, prior studies are inconclusive about the superiority of FFO over GAAP net income. Because depreciation is the largest reconciling item between FFO and net income, we examine the information content and value relevance of depreciation for both the REIT and non-REIT industries and report the following findings. First, accumulated depreciation is value-relevant for the REIT industry, whereas accumulated depreciation has little value relevance for comparably capital-intensive non-REIT industries. Second, accounting depreciation deviates from economic depreciation to a greater extent for REITs than for non-REIT industries. Third, accumulated depreciation has predictive ability for future revenues for REIT firms, but not for non-REIT firms. Finally, only the REIT industry displays all of these properties. In sum, evidence supports the REIT industry's assertion that GAAP depreciation consistently exceeds economic depreciation and that book value of assets is systematically understated.

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