Value Relevance Research

The increasing demand for transparent and holistic corporate reporting has led to the emergence of integrated reporting (IR) as a strategic tool for enhancing stakeholder decision-making. However, the effect of integrated reports on share price remains inconclusive, particularly in emerging markets where regulatory frameworks and corporate disclosure practices are evolving. This study investigates the effect of integrated reports on share price, with a focus on the control roles of firm profitability, leverage, and size. The purpose is to empirically examine whether the adoption and quality of IR significantly influence investor valuation and market performance. A panel data analysis was conducted on 127 publicly listed firms across diverse sectors in the Main Board of the NGX over 10 years (2014-2023), using a random effects regression model to establish the relationship between integrated reporting quality and share price. The study controlled for firm-specific variables such as profitability (ROA), leverage, and size, and accounted for regulatory changes introduced during the period under review. The findings reveal a statistically significant positive relationship between the quality of integrated reports and share price, suggesting that investors reward firms that provide comprehensive, transparent, and forward-looking information. Furthermore, firm profitability and size enhance this relationship, while high leverage weakens it. These results underline the relevance of integrated reporting in building investor confidence and market value. However, the study is limited by its geographic focus and data availability on IR scores, which may restrict generalisability. Practically, the research offers insights to managers, regulators, and investors by reinforcing the value relevance of integrated reporting. Socially, it promotes a culture of accountability and long-term sustainability in corporate reporting. The originality of this study lies in its nuanced examination of IR's impact on share price in a developing economy context, considering firm-level characteristics and regulatory evolution.

For accounting information to be useful for decision making it is essential that it is relevant for decision-making and should have a significant relation with stock prices or stock returns. Value relevance research aims to explain the impact of accounting information on stock prices or stock returns. This study examines the value relevance of earnings and book values on listed Indian pharmaceutical companies’ stock prices by using the Ohlson price model. The study gathered a series of panel data from 2006 to 2015 from the Nifty Pharma index. Ordinary least square and panel regression estimation were done using EViews. The findings provide sufficient evidence of those earnings per share (EPS) and book value per share (BVPS) jointly and individually for the Nifty Pharma index sample played an essential role in influencing stock prices. However, there is an insignificant decline in the combined value relevance of EPS and BVPS. The findings reveal that the EPS and BVPS played an import...

International Financial Reporting Standards (IFRS) was first adopted in 2005 by European Union countries while Nigeria mandatorily adopted in 2012 to participate in opportunities offered by globalization. This study, therefore, investigated the impact of IFRS adoption on the value relevance of financial information of quoted Healthcare Firms in Nigeria. The study conducted a pre (2008-2011) and post (2012-2015) IFRS analyses on six Healthcare firms quoted on the Nigeria Stock Exchange. The study sourced data on Earnings per Share (EPS), Change in Earnings per Share (CEPS), Book Value per Share (BVPS) and Share Price (SP) from published annual reports of the quoted Healthcare firms and Cashcraft Asset Management. Using the Multiple regression model the study revealed that Pre-IFRS financial information is value relevant; Post-IFRS financial information is also value relevant; and Post-IFRS financial information has relative value relevance over Pre-IFRS financial information.

In 2016, India implemented new accounting standards, Ind AS, aligning with IFRS to increase transparency in the financial reporting of Indian companies. This study examines the value relevance of financial information in India before and after the adoption of Indian accounting standards (Ind AS) by comparing the published financial statements in pre- and post-Ind AS periods and determines the influence of financial information on the market price of shares. The study period is for twelve years, from 2011 to 2022, divided into 2011–2016 (pre-Ind AS period) and 2017–2022 (post-Ind AS period). To evaluate the value relevance of financial information, the Ohlson pricing model is employed on the panel data of the blue-chip companies listed in the Nifty 50 Index. The results from the Least Squares regression reveal that the net cash from investing activities, profit-after-tax, and book-value-per-share were relevant for investment decisions prior to the adoption of the Ind AS. In contrast,...

In 2016, India implemented new accounting standards, Ind AS, aligning with IFRS to increase transparency in the financial reporting of Indian companies. This study examines the value relevance of financial information in India before and after the adoption of Indian accounting standards (Ind AS) by comparing the published financial statements in pre- and post-Ind AS periods and determines the influence of financial information on the market price of shares. The study period is for twelve years, from 2011 to 2022, divided into 2011–2016 (pre-Ind AS period) and 2017–2022 (post-Ind AS period). To evaluate the value relevance of financial information, the Ohlson pricing model is employed on the panel data of the blue-chip companies listed in the Nifty 50 Index. The results from the Least Squares regression reveal that the net cash from investing activities, profit-after-tax, and book-value-per-share were relevant for investment decisions prior to the adoption of the Ind AS. In contrast,...

For accounting information to be useful for decision making it is essential that it is relevant for decision-making and should have a significant relation with stock prices or stock returns. Value relevance research aims to explain the impact of accounting information on stock prices or stock returns. This study examines the value relevance of earnings and book values on listed Indian pharmaceutical companies’ stock prices by using the Ohlson price model. The study gathered a series of panel data from 2006 to 2015 from the Nifty Pharma index. Ordinary least square and panel regression estimation were done using EViews. The findings provide sufficient evidence of those earnings per share (EPS) and book value per share (BVPS) jointly and individually for the Nifty Pharma index sample played an essential role in influencing stock prices. However, there is an insignificant decline in the combined value relevance of EPS and BVPS. The findings reveal that the EPS and BVPS played an import...

This paper assesses whether the mandatory implementation of IndAS (IFRS converged Indian accounting standards) will result in higher financial reporting quality. Particularly, it studies the effect of adopting IndAS by Indian companies on earnings management, earnings persistence, and value relevance of the reported financials. The study contributes to existing body of literature by being a pioneer study for Indian industries, signalling areas of concern for regulators in India and global investors interested in Indian markets. Research findings indicate some improvement in the quality of reported financials after implementation of IndAS. Research output reveals enhancement in market-based measures. However, accounting-based attributes yield mixed findings. While no statistically significant difference is reported by earnings management metrics, the earnings persistence measure shows distinct improvement.

The present study analyses the combined, individual, and incremental value relevance of accounting information produced by firms listed on the S&P BSE-500 for FY-2006 to FY-2010, and changes therein over a period of time. Results provide sufficient evidence that accounting information is value relevant for BSE-listed firms. The combined value relevance of accounting information represented by earnings per share and book value per share has declined while there have been insignificant changes in the incremental value relevance of accounting information.

Writing this dissertation has been one of the most challenging and pleasant tasks that I ever faced during my academic path. Each word of this paper reflects the knowledge acquired since the beginning of this master programme, as well as of the under graduation degree, in which I had the pleasure to meet awesome mentors that taught me so much. I am sure that their contribution will be crucial to my professional career in finance. Firstly, I want to express my gratitude to my parents, sisters and family for all the love and support. Secondly, I wish to express my sincere gratitude to Mr Pawel Mielcarz from Kozminski University, in Warsaw, Poland. His guidance, suggestions and encouragement throughout the writing of this paper was crucial for the final result. I am thankful he accepted my invitation one year ago to supervise and guide my dissertation. Thirdly, I am grateful and indebted to Mr Miguel Sousa for his co-supervision of this dissertation as well for all his support and guidance since the course of Finance II in 2012. His generous assistance and constant dedication were fundamental to meet my academic goals. Moreover, this dissertation would not be possible without my friends. We shared wonderful times studying and learning together. Finally, I wish to thank FEP for the last 6 years. I am glad I choose such prestigious institution. Those times will never come back.

The objective of this study is to analyze the value relevance of accounting fraud and discretionary accruals (positive and negative discretionary accruals) in French context during the period 2006-2010. Using the model of Ohlson (1995) which test the price and return model, we note that the price model provides a more significant result on the value relevance than the return model. In addition, fraud has a more significant and negative effect than discretionary accruals and even dilutes its existence in the price and return model. This finding proves the signals theory that bad information transferred quickly in the stock market.

This paper examines how firm-specific attributes affect the value relevance of summary accounting numbers in Nigeria. The paper also investigates whether the adoption of International Financial Reporting Standards (IFRS) affects the relationship between the summary accounting numbers (book value of equity and earnings) and firm-specific characteristics (firm size, liquidity and leverage). Data from 54 firms in 10 sectors of the Nigerian Stock Exchange (covering a period of 6 years, 2009 to 2014, divided into 3 years pre-IFRS period and 3 years IFRS period) were analyzed based on the Ohlson (1995) model. Results from the analyses indicate that firm-specific characteristics affect the relationship between summary accounting numbers and market value, and this effect increased in the period after IFRS adoption. The implication of these findings is that firms seeking to improve their market values must work towards the firm-specific attributes that enhance firm value. By examining the ef...

The paper explores the benefits of global financial reporting models for developing countries, discussing the case of Romania, which, at the recommendations of the World Bank and the International Monetary Fund, exceeded the minimum requirements of the European Union, by imposing the full adoption of the International Financial Reporting Standards (IFRS) in individual financial statements of listed companies. Using regression analysis and decomposition techniques, the paper explores the evolution in value relevance of financial variables based on pre-(2009-2012) and post-(2014-2016) adoption samples, showing that after IFRS adoption financial information becomes significantly more relevant for equity valuations. We also provide empirical evidence showing that the degree of relevance for stock valuation, as well as the IFRS impact varies across types of firms. Overall, our findings tend to indicate the success of the financial reporting reform, which could be relevant for other jurisdictions facing similar decisions.

This paper aims to investigate whether the adoption of International Financial Reporting Standards (IFRS) increases the value relevance of accounting information for insurance firms listed in the Saudi stock market. The study employs the Ohlson model (1995) and the Easton–Harris valuation model (1991) in order to examine the association among stock market value and book value and earnings per share. The data was collected for 21 insurance companies listed in the Saudi stock market during the period 2007–2014, which covered pre- / post-IFRS periods. The results reveal that the book value of equity becomes less value relevant whereas earnings are more value relevant. Further analysis suggests that the increase in the value relevance of accounting information is positively influenced by companies’ attributes, especially profitability and size rather than IFRS adoption. These results highlight the importance of institutional factors in the determination of the value relevance of account...

There are numerous facets of research and when it comes to validity or reliability the thrust becomes more entangled and crucial. Typically, research done in the humanities is Janus-faced as it constantly assesses the facts and its relevance in the contemporary world. Any research in the field stands on its subjectivity that only comes with the rigorous testing and cross-checking of data to authenticate it with valid and reliable information. Research in the field of humanities is the anchor to the world on cultural development hence the data provided in the research should be testified on the grounds of varied situations and time frames to ensure validity and reliability. Acquainting research with approaches that testify for its validity is essential, along with considering a legitimate approach for reliability, this research paper will aim to provide a view on how invalid and unreliable data can prove hazardous for a generation. Through, the case study of Vivek Agnihotri's The Tashkent Files the research will further provide a background for the need for data to be valid and reliable.

The use of reliability and validity are common in quantitative research and now it is reconsidered in the qualitative research paradigm. Since reliability and validity are rooted in positivist perspective then they should be redefined for their use in a naturalistic approach. Like reliability and validity as used in quantitative research are providing springboard to examine what these two terms mean in the qualitative research paradigm, triangulation as used in quantitative research to test the reliability and validity can also illuminate some ways to test or maximize the validity and reliability of a qualitative study. Therefore, reliability, validity and triangulation, if they are relevant research concepts, particularly from a qualitative point of view, have to be redefined in order to reflect the multiple ways of establishing truth.

This research aims to provide empirical evidence concerning the value
relevance of earnings and book values to stock prices (individually and in aggregate) in
Iraqi Stock Exchange market in the light of shift in Iraqi environment from macroeconomic
to micro-economic after American occupation in 2003. thus, this research
aims to explore the association between the value-relevance of accounting information
before and after 2003. This study contributes to understand reflections of environmental
factors on accounting and the responding of accounting to these factors , and its effect on
the way the investors in certain period interpret and apply information, because this
information plays a vital role in the efficient capital market.

In this study, we examine factors associated with equity valuation in a newly emerging market, Turkey. In the United States and other developed countries, research indicates that both earnings and book value are important predictors of equity valuation. In Turkey, earnings appear to have information content, but earnings appear to be declining in importance over time. Book value adjusted for inflation has a stronger association with equity values. In the inflationary and risky environment of Turkey, where future value of earnings is quite uncertain, investors may be paying less attention to earnings. Our study also indicates that, overall, earnings and inflation-adjusted book values combined virtually explain almost 75 percent of the variation in equity prices. This is much higher than results using U.S. data where the maximum R 2 for pooled data is 15 percent.

Balanced Scorecard is a performance measurement system or method that looks at the performance of a business through four dimensions. They are the financial, the customer, internal business process and the learning and g and growth dimensions. Kad Skor Berimbang ialah sistem atau kaedah pengukuran pencapaian dengan melihat pencapaian sesebuah perniagaan menerusi empat dimensi. Dimensi tersebut ialah dimensi kewangan (financial), dimensi pelanggan (customer), dlmensi proses dalaman perniagaan (internal business process) dan dimensi pembelajaran dan pengembangan (learning and growth).

Balanced Scorecard is a performance measurement system or method that looks at the performance of a business through four dimensions. They are the financial, the customer, internal business process and the learning and g and growth dimensions.

In this study, we examine factors associated with equity valuation in a newly emerging market, Turkey. In the United States and other developed countries, research indicates that both earnings and book value are important predictors of equity valuation. In Turkey, earnings appear to have information content, but earnings appear to be declining in importance over time. Book value adjusted for inflation has a stronger association with equity values. In the inflationary and risky environment of Turkey, where future value of earnings is quite uncertain, investors may be paying less attention to earnings. Our study also indicates that, overall, earnings and inflation-adjusted book values combined virtually explain almost 75 percent of the variation in equity prices. This is much higher than results using U.S. data where the maximum R 2 for pooled data is 15 percent.

The present study analyses the combined, individual,
and incremental value relevance of accounting information
produced by firms listed on the S&P BSE-500 for FY-2006 to
FY-2010, and changes therein over a period of time. Results
provide sufficient evidence that accounting information is value
relevant for BSE-listed firms. The combined value relevance of
accounting information represented by earnings per share and
book value per share has declined  while there have been
insignificant changes in the incremental value relevance of
accounting information.