Value-Relevance Of Accounting Information:Evidence From Iranian Emerging Stock Exchange

• Main Authors: Ghayoumi, Ali Faal, Nayeri, Mahmoud Dehghan, Manouchehre Ansari, Raeesi, Taha
• Format: Text
• Language: English
• Published: Zenodo 2011
• Subjects: Value-Relevance of Accounting Information; Iranianstock exchange; Return Model; Price Model; Alford; Elliott; Gjerde; Norway; Sommers; sami
• Online Access: https://dx.doi.org/10.5281/zenodo.1084836; https://zenodo.org/record/1084836

This study aims to investigate empirically the valuerelevance of accounting information to domestic investors in Tehran stock exchange from 1999 to 2006. During the present research impacts of two factors, including positive vs. negative earnings and the firm size are considered as well. The authors used earnings per share and annual change of earnings per share as the income statement indices, and book value of equity per share as the balance sheet index. Return and Price models through regression analysis are deployed in order to test the research hypothesis. Results depicted that accounting information is value-relevance to domestic investors in Tehran Stock Exchange according to both studied models. However, income statement information has more value-relevance than the balance sheet information. Furthermore, positive vs. negative earnings and firm size seems to have significant impact on valuerelevance of accounting information. : {"references": ["Alford, A., Jones, J., Leftwich, R., Zmijewski, M., \"The relative\ninformativeness of accounting disclosures in different countries\",\nJournal of Accounting Research, 1993, Supplement 31: 183-229.", "Amir, E., Harris, T.S., Venuti, E.K., \"A comparison of value relevance\nof US versus non-USGAAP accounting measures using Form 20-F\nreconciliations\", Journal of Accounting Research, 1993, Supplement 31:\n230-264.", "Barth, M. E., Beaver, W. H., & Landsman, W. R. \"The Relevance of the\nValue Relevance Literature for Financial Accounting Standard Setting:\nAnother View\", Journal of Accounting and Economics, 2001, 31: 77-\n104.", "Bauman, M.P., \"A Review of Fundamental Analysis Research in\nAccounting\", Journal of Accounting Literature, 1996, 15: PP 2-10.", "Beaver, W.H., Financial Reporting: An Accounting Revolution,\nPrentice-Hall, Englewood Cliffs, NJ, 1998.", "Benayed, M.R., & Abaoud, E., \"Value relevance of Accounting\nEarnings and the Information Contents: Empirical Evidence in Tunisian\nStock Exchange\", 2006, WWW.SSRN.COM.", "Chen, J., Chen, S., & Su, X., \"Is accounting information value-relevant\nin the emerging Chinese stock market?\" , Journal of International\nAccounting Auditing and Taxation, 2001, 10(1): 1-22.", "Collins, D. W., Maydew, E. L., & Weiss, I. S., \"Changes in the valuerelevance\nover the past forty years\", Journal of Accounting and\nEconomics, 1997, 24: 39-67.", "Dumontier, P., Raffournier, B., \"Accounting and Capital Market: A\nSurvey of the European Evidence\", European Accounting Review, 2002,\nNO.11, PP: 119 - 124.\n[10] Easton, P., & Harris. T., \"Earnings as an Explanatory Variable for\nReturns\", Journal of Accounting Research, 1991, 29: PP 19-36..\n[11] Easton P.D., Sommers G.A., \"Scale and the Scale Effect in Market-\nBased Accounting Research\", Journal of Business Finance and\naccounting, 2002, NO.30, PP: 25 - 35.\n[12] Elliott, J., & Hanna, J.,\"Repeated accounting write-offs and the\ninformation content of earnings\", Journal of Accounting Research, 1996,\n34: 135-155.\n[13] Feltham, G.A., Ohlson, J.A., \"Valuation and clean surplus accounting\nfor operating and financial activities.\" Contemporary Accounting\nResearch, 1995, 11: 689-732.\n[14] Financial Accounting Standards Board, Statement of Financial\nAccounting Concepts No. 2, Qualitative characteristics of accounting\ninformation. FASB, Stamford, Connecticut, 1980.\n[15] Francis, J., & Schipper, K., \"Have Financial Statements Lost their\nRelevance?\", Journal of Accounting Research, 1999, 37: 319-324.\n[16] Gjerde \u00d8., Knivsfl\u00e5 K., S\u00e6ttem F., \"The Value-Relevance of Financial\nReporting in Norway 1965-2004.\", 2007, WWW.SSRN.COM.\n[17] Harries, T.S., Lang, M. and M\u00f6ller, H.P., \"The value relevance of\nGerman accounting measures: An empirical analysis.\" Journal of\nAccounting Research, 1994, 32: 187-209.\n[18] Hayn, C., \"The information content of losses\", Journal of Accounting\nand Economics, 1995, 20: PP 125-153.\n[19] King, R. D. and Langli, J. C., \"Accounting diversity and firm valuation.\"\nThe International Journal of Accounting, 1998, 33: 529-567.\n[20] Lev, B. and Zarowin, P., \"The boundaries of financial reporting and how\nto extend them.\", Journal of Accounting Research, 1999, 37: 353-385.\n[21] Ohlson, J., \"Earnings, Book Values, and Dividends in Equity\nValuation\", Contemporary Accounting Research, 1995, (spring): 661-\n687.\n[22] Sami, H., & Zhou, H., ., \"A Comparison of Value Relevance of\nAccounting Information in Different Segments of the Chinese Stock\nMarket\", The International of Accounting, 2004, 39: 403-427."]}