Value Relevance of Accounting Earnings and the Information Content of its Components: Empirical Evidence in Tunisian Stock Exchange

2006 ◽  
Author(s):  
Mohamed Rafik Rafik BEN AYED ◽  
Ezzeddine Abaoub
Keyword(s):  
Empirical Evidence ◽  
Information Content ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Earnings

scholarly journals The Different Changes Of Value Relevance Of Earnings Between SOEs And NSOEs After Adoption Of IFRS: Evidence From China

2016 ◽  
Vol 32 (3) ◽  
pp. 765-776
Author(s):  
Wanli Li ◽  
Hong Guo
Keyword(s):  
Empirical Evidence ◽  
Value Relevance ◽  
Accounting Standards ◽  
The State ◽  
Accounting Standard ◽  
Accounting Earnings ◽  
Financial Report ◽  
Empirical Results ◽  
Mandatory Adoption

This article studies changes of value relevance of earnings after mandatory adoption of new CAS (the Chinese Accounting Standards) which is substantially convergent with IFRS (the International Financial Report Standards) in China’s listed enterprises. We extend the previous research by examining the different impact on value relevance of earnings between SOEs (the State-Owned Enterprises) and NSOEs (the Non-State-Owned Enterprises) after adoption of new CAS, which is based on the samples consisting of 836 companies listed on A-shares market of China. The empirical results show that the value-relevance of accounting earnings significantly increased after 2007, and represent that value relevance of earnings increased significantly in SOEs while there are no significant changes in NSOEs after adoption of the new CAS. Our research has implications for China’s Accounting Standard setters who desire to reach expected consequences of convergence with IFRS, and provide empirical evidence for adoption of IFRS in different countries which have both SOEs and NSOEs.

scholarly journals The impact of the Law on Strengthening the Security of Financial Relations on the value relevance of accounting information in Tunisian Stock Exchange

2013 ◽  
Vol 3 (1) ◽  
pp. 42
Author(s):  
Mohamed Rafik Ben Ayed ◽  
Ezzeddine Abaoub
Keyword(s):  
Stock Returns ◽  
Value Relevance ◽  
Stock Exchange ◽  
Explanatory Power ◽  
Accounting Information ◽  
Financial Statements ◽  
Accounting Earnings ◽  
The Law ◽  
Security Returns ◽  
The Impact

This paper empirically investigates the value relevance of accounting earnings measures in the emerging capital market of Tunisia. The issue is tested by estimating the regression of annual security returns on different earnings measures extracted from income statements. In Tunisia, firms prepare their financial statements in accordance with Tunisian Accounting Standards (TAS) which are inspired from International Financial Reporting Standards (IFRS). Based on a sample of 389 firm years for firms listed on the Tunis Stock Exchange (TSE) during the period 1997-2008 and using pooled regressions, we find that accounting earnings measures are weakly related to security returns. However, we find that earnings before taxes has the higher explanatory power for stock returns. This is perhaps due to the fact that financial statements are often influenced by taxation rules (ROSC, 2006; section 42). Further, we find that cash flow from operations and Total accruals are not value relevant for valuation. We tested whether the value relevance of each measure of performance improved after the adoption in October 2005 of the Law on Strengthening the Security of Financial Relations (LSSFR). Consistent with prior US and other international findings, results show that the explanatory power and the magnitude of the slope coefficient of each measure increased when we take into account for the impact of this enactment. However, the increase is not statistically significant. This is perhaps due to the employed specification of the relation between security returns and accounting information.

scholarly journals APAKAH PELAPORAN BERKELANJUTAN MEMODERASI RELEVANSI NILAI INFORMASI AKUNTANSI?

2019 ◽  
Vol 6 (1) ◽  
pp. 76-94
Author(s):  
Randy Kuswanto
Keyword(s):  
Empirical Evidence ◽  
Firm Value ◽  
Sampling Method ◽  
Value Relevance ◽  
Stock Exchange ◽  
Listed Company ◽  
Sustainability Reporting ◽  
Book Value ◽  
Pair Matching ◽  
Sustainability Report

This study aims to obtain empirical evidence about the effect of sustainability reporting as a moderating variable on value relevance concept. Prior studies suggest that sustainability report can enhance the company’s financial performance which has similar context with value relevance. This study modifies Ohlson Model (1995) with additional moderating variable to capture the effect of sustainability reporting in Indonesia. The population in this study is all public listed company in Indonesia Stock Exchange in 2016. Pair matching and purposive sampling is used as a sampling method to collect 76 samples. The results of this study show sustainability reporting failed to indicate its moderating effect both on the interaction with earning and book value. Nevertheless, value relevance of group who published the sustainability report is higher than the opposite group. As a final result, this study provides empirical evidence that sustainability report cannot increase the firm value in value relevance model but could increase the level of value relevance itself.

scholarly journals Debt covenant slack, earnings management, and value relevance of accounting information

2019 ◽  
Vol 6 (4) ◽  
pp. 86-96 ◽  
Author(s):  
Ni Putu Sintya Purnama Dewi ◽  
Dewa Gede Wirama
Keyword(s):  
Earnings Management ◽  
Empirical Evidence ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Partial Least Square ◽  
Least Square ◽  
Performance Information ◽  
Debt Covenant ◽  
The Relationship

This study aims to examine the effect of debt covenant slack on the value relevance of accounting information, and whether earnings management works as an intervening variable. A total of 40 non-financial companies listed in Indonesia Stock Exchange from 2013 to 2017 were selected as sample. Three hypotheses were tested using partial least square and analyzed via path analysis. This study found that debt covenant slack positively affects the value relevance of accounting information. Possibly, the tendency of small debt covenant slacks in the firms causing the information of firms’ performance to be less relevant for the investor because they believe that the firms will prioritize the debt payments rather than dividends. Furthermore, empirical evidence from this study indicates that debt covenant slack affects investors’ decision in using firms’ performance information. However, no statistically significant effect was found neither on the relationship between debt covenant slack and earnings management nor on the relationship between earnings management and the value relevance of accounting information. Hence, earnings management is not an intervening variable in the effect of debt covenant slack on the value relevance of accounting information.

scholarly journals THE EFFECTS OF CORPORATE GOVERNANCE, FIRM SIZE, PROFITABILITY, AND GROWTH OPPORTUNITIES ON THE VALUE RELEVANCE OF ACCOUNTING EARNINGS – A STUDY OF THE INDONESIA STOCK EXCHANGE

2020 ◽  
Vol 12 (2) ◽  
pp. 174-193
Author(s):  
Surinastiti Eka Putri ◽  
Rosinta Ria Panggabean
Keyword(s):  
Corporate Governance ◽  
Firm Size ◽  
Value Relevance ◽  
Stock Exchange ◽  
Growth Opportunities ◽  
Accounting Earnings ◽  
Earnings Response Coefficient ◽  
Good Corporate Governance ◽  
Response Coefficient ◽  
Earnings Response

Capital market serves as an alternative financing-wise and as a means investment-wise. Relevance of accounting information comes out as profound to investors as can be observed within the financial statements of a company. The aim of this study was to figure out the effects of corporate governance, firm size, profitability, and growth opportunities on the value relevance of accounting earnings. The present research used a quantitative method and secondary data in the form of annual reports, and the objects hired were 22 companies listed on the LQ45 index (August of 2018–January of 2019) of the Idonesia Stock Exchange for the period 2015–2017. Analysis was conducted by a descriptive statistical method. The results obtained showed that the variable profitability, which was measured on return on asset, affected the value relevance of accounting earnings, while the variables good corporate governance, firm size, and growth opportunities did not affect the value relevance of accounting earnings. Companies’ management is advocated to optimize the management of the assets in place as it was found in this research that return on asset had an effect on earnings response coefficient. This is necessary so that the companies are able to generate earnings response coefficients to which investors can respond positively.   Keywords: Earnings Response Coefficient, Firm Size, Good Corporate Governance, Growth Opportunities, Indonesia, Return On Asset  

scholarly journals Income Smoothing Behavior: A Study of Companies Listed at Food and Beverage Sector Companies at Indonesian Stock Exchange

2018 ◽  
Vol 6 (1) ◽  
pp. 212
Author(s):  
Maropen R. Simbolon ◽  
Francis M Hutabarat ◽  
Richard F. Simbolon
Keyword(s):  
Logistic Regression ◽  
Agency Theory ◽  
Empirical Evidence ◽  
Stock Exchange ◽  
Income Smoothing ◽  
Market Behavior ◽  
Accounting Earnings ◽  
Food And Beverage ◽  
Fundamental Values ◽  
Observation Period

Income smoothing, or the so-called income smoothing steps management purposed to make the company’s reported accounting earnings smooth or with low fluctuation. This behavior was motivated by the existence of market behavior that tends to be responding positively to the knowledge about the company’s improved fundamentals and definite properties. This phenomenon was used by management to provide for the welfare of its shareholders as indirectly seen in agency theory. The purpose of this study was to obtain empirical evidence of the influences of the fundamental values that drive management to perform income smoothing. By making observations of selected Consumer Sector companies’ data were analyzed using logistic regression. Based on the analysis, the income smoothing behavior and factors that affected it whether it is significantly affect it or not and whether the influence towards the income smoothing practices are positive or negative as seen in companies listed in Indonesia Stock Exchange in the observation period.

Value relevance of earnings and book values in the Qatari Stock Exchange

2019 ◽  
Vol 14 (1) ◽  
pp. 62-75 ◽  
Author(s):  
Hesham I. Almujamed ◽  
Mishari M. Alfraih
Keyword(s):  
Empirical Evidence ◽  
Value Relevance ◽  
Stock Exchange ◽  
Emerging Market ◽  
Financial Statements ◽  
Future Research ◽  
Content Type ◽  
Valuation Model ◽  
Book Values ◽  
Practical Implications

Purpose The study of developed capital markets suggests that information provided in financial statements has lost its value relevance to equity holders. The purpose of this paper is to explore this issue in the emerging market of Qatar. Design/methodology/approach Following other studies in the literature, the study examines the value relevance of earnings and book values using the price valuation model provided by Ohlson (1995). A total of 215 observations were collected from all firms listed on the Qatari Stock Exchange over a period of five years (2012–2016). Findings This study suggests that the value relevance of both earnings and book values has noticeably decreased over the sample period. However, its results show that the decline in the value relevance of earnings favored book values. Research limitations/implications Like other studies, this one has limitations that suggest areas for future research. For example, in Qatar, like other emerging markets, a lack of data prevents the performance of deep analysis. Additionally, the authors only use Ohlson’s (1995) model as a framework for evaluation. It would be interesting to explore the changes when examining alternative valuation models. Another limitation is that the authors examine only two accounting measures: earnings and book values. Further research could explore changes in the value relevance of other measures, such as cash flow. Practical implications These findings provide empirical evidence regarding the value relevance of earnings and book values in an emerging market. Originality/value To the authors’ knowledge, this paper provides the first empirical evidence regarding the value relevance of earnings and book values in the emerging capital market of Qatar.

KONVERGENSI AKUNTANSI DAN RELEVANSI NILAI INFORMASI AKUNTANSI PADA PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

2019 ◽  
Vol 3 (1) ◽  
pp. 73
Author(s):  
Khairani Khairani
Keyword(s):  
Stock Price ◽  
Sampling Method ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Total Sample ◽  
Test Results ◽  
Accounting Earnings ◽  
Book Value ◽  
Public Company

This study aims to explore the value relevance of accounting information in the period before an after the implemented of IFRS in Indonesia uses the price models. Implementation of IFRS was predicted will be increase of value relevance of accounting information. This study uses the value of accounting earnings and book value of equity as a proxy for the value relevance of accounting information. The value relevance of accounting information in the decision-making of investors as reflected in the stock price. The population of this research is a listed public company on the Indonesia Stock Exchange in the period 2009-2015. The data are choice using purposive sampling method, with the result that total sample are 45 companies.  This research analyzed using Linier Regretion, Paired-Sample T Test and significance simultant test. Results of this study indicate that the adoption of IFRS -based standards in Indonesia has been able to improve the value relevance of accounting information.

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