scholarly journals Comparative Study on Value Relevance of Accounting Data Between Korean and Chinese Firms

2013 ◽  
Vol null (39) ◽  
pp. 417-437 ◽  
Author(s):  
정태범
Keyword(s):  
Comparative Study ◽  
Value Relevance ◽  
Chinese Firms ◽  
Accounting Data

scholarly journals Value relevance of accounting data and financial crisis in Europe: an empirical analysis

2012 ◽  
Vol 2 (2) ◽  
pp. 201 ◽  
Author(s):  
Alain Devalle
Keyword(s):  
Financial Crisis ◽  
Positive Impact ◽  
Value Relevance ◽  
Net Income ◽  
Accounting Data ◽  
Book Value ◽  
Crisis Period ◽  
Comprehensive Income ◽  
The Impact ◽  
The Relationship

This paper aims at verifying the relationship between book value and  market value for a four years period (2006-2009) in Europe, under IFRS. In particular, I used value relevance approach to measure whether net income or comprehensive income are more useful to understand the relationship between market data and financial data. Moreover, the paper analyzes the impact of financial crisis on the value relevance of accounting data. The examination period runs from a pre-crisis period (2006-2007) to an in-crisis period (2008-2009). Results shows that comprehensive income is more value relevant than net income. Furthermore, the financial crisis has a positive impact on value relevance.  

Costs of Equity and Earnings Attributes

2004 ◽  
Vol 79 (4) ◽  
pp. 967-1010 ◽  
Author(s):  
Jennifer Francis ◽  
Ryan LaFond ◽  
Per M. Olsson ◽  
Katherine Schipper
Keyword(s):  
Value Relevance ◽  
Positive Association ◽  
Equity Capital ◽  
Cost Of Equity Capital ◽  
Cost Of Equity ◽  
Operating Cycle ◽  
Accrual Quality ◽  
Accounting Data ◽  
Earnings Attributes ◽  
The Cost

We examine the relation between the cost of equity capital and seven attributes of earnings: accrual quality, persistence, predictability, smoothness, value relevance, timeliness, and conservatism. We characterize the first four attributes as accounting-based because they are typically measured using accounting information only. We characterize the last three attributes as market-based because proxies for these constructs are typically based on relations between market data and accounting data. Based on theoretical models predicting a positive association between information quality and cost of equity, we test for and find that firms with the least favorable values of each attribute, considered individually, generally experience larger costs of equity than firms with the most favorable values. The largest cost of equity effects are observed for the accounting-based attributes, in particular, accrual quality. These findings are robust to controls for innate determinants of the earnings attributes (firm size, cash flow and sales volatility, incidence of loss, operating cycle, intangibles use/intensity, and capital intensity), as well as to alternative proxies for the cost of equity capital.

scholarly journals Empirical Evidence on the Value Relevance of Brand Values across Countries

2018 ◽  
Vol 11 (2) ◽  
pp. 197
Author(s):  
Grazia Dicuonzo ◽  
Andrea Perrone ◽  
Vittorio Dell'Atti
Keyword(s):  
Stock Prices ◽  
Intangible Assets ◽  
Value Relevance ◽  
Empirical Studies ◽  
Balance Sheet ◽  
Business Success ◽  
Accounting Data ◽  
Related Information ◽  
Consulting Firms ◽  
Brand Values

Stock prices reflect firms-related information differently depending on the environmental and institutional context. However, previous empirical studies test mainly accounting data. Since intangible assets became a crucial element for business success and brands are considered critical for value creation, correlated disclosure is proven to be value relevant for investors. The majority of accounting standards do not allow to recognize internally generated intangible assets in the balance sheet and therefore more and more practitioners, both investors and analysts, use brand values provided by third independent parties, such as consulting firms. The purpose of this paper is to investigate whether and how brand-related information differs across countries testing the value relevance of brand values published in Brand Finance’s Reports. This study aims to open a new stream of literature regarding the value relevance of non-accounting information across countries.

Revisiting the Value Relevance of Accounting Information in the Italian and UK Stock Markets

2017 ◽  
pp. 102-113
Author(s):  
James A. Rossi
Keyword(s):  
Financial Markets ◽  
Stock Markets ◽  
Value Relevance ◽  
Accounting Information ◽  
Cash Flows ◽  
Reliability Of Results ◽  
Accounting Data ◽  
The Uk ◽  
Relevance And Reliability

This chapter aims to investigate the results of the value relevance of accounting information with reference to the study: “The value relevance of accounting information in the Italian and UK stock markets”. Results revealed from this study are as follows: - First, evidence shows the greater value relevance of accounting information in Italy than in the UK, even if this result must be explained according to the sample's characteristics. Second, the study underlines that in Italy the most value relevant accounting data refer to earnings while in the UK the focus is mainly on cash flows. The chapter also seeks to contribute to the gap in the literature on the value relevance of accounting information in the UK and Italy. In so doing it investigates the relevance and reliability of results derived in this study, their applicability to current market developments – as well as recent fluctuations and volatility in the financial markets.

Heterogeneous Investment Opportunities in Multiple-Segment Firms and the Incremental Value Relevance of Segment Accounting Data

2003 ◽  
Vol 78 (2) ◽  
pp. 397-428 ◽  
Author(s):  
Peter F. Chen ◽  
Guochang Zhang
Keyword(s):  
Value Creation ◽  
Value Relevance ◽  
Growth Potential ◽  
Capital Investments ◽  
Firm Level ◽  
Accounting Data ◽  
Incremental Value ◽  
Investment Opportunities ◽  
Level Information ◽  
Segment Data

Applying a real-options-based valuation approach, we develop and test a model that addresses the incremental value relevance of segment data beyond firmlevel accounting data. Prior studies (e.g., Zhang 2000; Biddle et al. 2001) show that equity valuation requires accounting data (in part) because accounting provides signals that guide capital investments underlying value creation. In this study, we establish that the usefulness of segment data beyond aggregate data relates to heterogeneity of investment opportunities across segments, caused by divergences of segment profitability and growth potential. Empirical results are consistent with the model's predictions. We also assess the magnitude of the valuation impact of segment information relative to that of firm-level information.

scholarly journals Value relevance of Accounting Information and its Impact on Stock Prices: Case Study of Listed Banks at Karachi Stock Exchange

2014 ◽  
Vol 1 (3) ◽  
pp. 6-9 ◽  
Author(s):  
Khurram Shehzad ◽  
Aisha Ismail
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Banking Sector ◽  
Value Relevance ◽  
Stock Exchange ◽  
Accounting Information ◽  
Relevant Information ◽  
Accounting Data ◽  
Economic Decisions ◽  
Future Events

This study primary investigates the value relevance of accounting information in banking sector of Pakistan. The study employed the pooled regression technique on nineteen private banks from the period of 2008 to 2012. The findings show that earning per share is more value relevant than book values, while accounting data explains a high proportion of the stock price. The relevant information is such that it influences the economic decisions of users by helping them evaluate past, present and future events.

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