The value-relevance of disclosed summarised financial information of listed associates

Badenhorst, Wessel; Brümmer, Leon M.; Wet, Johannes H.vH. de

doi:10.1016/j.intaccaudtax.2015.02.002

Cited by 9 publications

(10 citation statements)

References 19 publications

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“…Most scholars have examined FVA via the lens of valuation relevance supporting the notion of decisionusefulness. The studies confirm that the value relevance of fair values is negatively related with fair value hierarchy (So and Smith, 2009;Siekkinen, 2016;Goh et al, 2015;Magnan et al, 2015;Müller et al, 2015;Chung et al, 2017;Israeli, 2015;Song et al, 2010;Badenhorst et al, 2015), which supports the argument that investors are more likely to decrease the weight they place on less reliable Level 2 and Level 3 fair value estimates. Given greater information asymmetry associated with higher fair value levels, researchers became interested in the potential of firm-internal and external characteristics to alleviate this impediment.…”

Section: Domain 2: Fva -An Enhancement Of Decisionusefulness In General-purpose Financial Reportingsupporting

confidence: 73%

“…Zeff (2007: p. 291) posits that the existence of such markets is not abundant amongst IFRS adopters: "the asset pricing markets are not sufficiently deep to provide the necessary data with which to revalue many of the assets reliably". For example, conclusive evidence documents that the valuation relevance of fair values decreases with an increasing fair value hierarchy level (Elbannan and Elbannan, 2015;Song et al, 2010;Badenhorst, 2015;Magnan et al, 2015). Therefore, the purpose of this study does not include evaluation of market efficiency in relation to FVA application.…”

Section: Conceptual Boundary Implicationsmentioning

confidence: 99%

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Fair value accounting: Perspective on stewardship function

Andrejcik¹,

Singh²,

Halari³

2021

J. Account. Taxation

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This paper reviews the existing and emerging perspectives on fair value accounting (FVA) in the context of the stewardship function of financial reporting. This study draws on diverse research threads and theoretical notions to advance a comprehensive assessment of existing FVA research in the context of the trade-off between decision-usefulness and the stewardship objective. By conducting a narrative literature review, the authors identify two distinct domains of literature: FVA-a result of a conceptual shift in financial reporting; and FVA-an enhancement of decision-usefulness in generalpurpose financial reporting. This study posits that FVA can be considered as an evolutionary, rather than revolutionary, development in financial reporting measurement which emerged from financialisation and globalisation of economies. It is further suggested that the ability of FVA to provide stewardship-relevant information may be reduced due to the emphasis it places on the provision of decision-useful information for investment purposes. Therefore, the authors call for a greater engagement between policy-setters and researchers when choosing conceptual underpinnings for financial measurement objectives.

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Section: Domain 2: Fva -An Enhancement Of Decisionusefulness In General-purpose Financial Reportingsupporting

confidence: 73%

Section: Conceptual Boundary Implicationsmentioning

confidence: 99%

Fair value accounting: Perspective on stewardship function

Andrejcik¹,

Singh²,

Halari³

2021

J. Account. Taxation

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“…As a fundamental source of information, financial statements are at the heart of informed economic choices for all users (Badenhorst et al, 2015). Thus, the credibility, reliability and clarity of financial statements are vital for the continued success of an economy.…”

Section: Introductionmentioning

confidence: 99%

The link between CSR and earnings quality: evidence from Egypt

Mohmed

Flynn

Grey

2019

JAEE

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Purpose The purpose of this paper is to investigate the relationship between corporate social responsibility (CSR) and earnings quality, as proxied by accrual earnings management, in Egyptian firms. This research is conducted in a bidirectional fashion using simultaneous equations and considers two theoretical perspectives. Design/methodology/approach The study employs CSR annual scores from the Egyptian environmental, social and governance index (S&P/ESG index) for the 100 highest scoring firms from 2007 to 2015. It utilizes three earnings quality measures, in addition to considering reverse causality and endogeneity. Findings The results indicate that CSR has a positive association with earnings quality only in the top CSR scoring firms (top 30 ranked firms according to the index). Engaging in CSR in such firms enhances the quality of their earnings. This suggests that firms with relatively lower CSR scores (bottom 70 ranked firms according to the index) may use CSR to “greenwash” weaker earnings. Research limitations/implications The findings suggest that researchers, analysts and policy makers should consider earnings quality when estimating the real value of a firm’s CSR score. In particular, the Egyptian S&P/ESG index committee could further develop the index by incorporating earnings quality measures. Originality/value The study contributes to the literature by exploring in-depth the causal relationship between CSR practices and accrual earnings management in an emerging market. The results provide a nuanced story of CSR practices, with accruals earnings management (earnings quality) acting as a mediator of CSR’s inherent value.

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“…One of the main objectives of the current paper is to address this gap in the literature by examining the usefulness of segmental information prepared under IFRS 8 in developing countries by using a value relevance approach. In particular, we examine whether segmental information has enhanced the fundamental characteristics of useful accounting information by testing its association with share prices for listed companies in both Jordan and Qatar (Emmanuel and Garrod, 2002;Francis et al, 2003;Al Jifri and Citron, 2009;Birt and Shailer, 2009;Shu-hsing et al, 2012;IASB, 2013;Hamberg and Beisland, 2014;Badenhorst et al, 2015;Rahman, 2016;Nurul Houqe and Monem, 2016;Gotti, 2016;André et al, 2016).…”

Section: Introductionmentioning

confidence: 99%

The extent of segmental reporting and its value relevance: cross-country evidence

Mardini

Tahat

Power

2018

JAEE

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Purpose -The current study examines the extent of segmental reporting disclosure and its value relevance to a sample of Qatari and Jordanian listed companies following the implementation review of the International Financial Reporting Standard (IFRS) 8. This was the first standard to be subjected to a post-implementation review. Annual reports are initially analysed to investigate the level of segmental information that was published by companies in these two countries.Methodology -Using the Ohlson (1995) model, the study employs regression analysis to test hypotheses relating to the value relevance of the segmental disclosures uncovered. In addition, One-Way ANOVA and Kruskal-Wallis tests are used to investigate any variation in segmental reporting among sectors. Originality/Value -This paper is one of the few to provide empirical evidence on the role of segmental reporting following the post implementation review that was conducted for IFRS 8. Findings -

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The value-relevance of disclosed summarised financial information of listed associates

Cited by 9 publications

References 19 publications

Fair value accounting: Perspective on stewardship function

Fair value accounting: Perspective on stewardship function

The link between CSR and earnings quality: evidence from Egypt

The extent of segmental reporting and its value relevance: cross-country evidence

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