Value Relevance of Accounting Information: A Review of Empirical Evidence Across Continents

Bhatia, Meena; Mulenga, Mwila J.

doi:10.1177/2278682118823307

Cited by 16 publications

(7 citation statements)

References 76 publications

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“…Investigating the impact of IFRS on the usefulness of financial statements is important since it provides evidence of whether IFRS implementation yields the expected objective of general‐purpose financial reporting (IASB, 2018). Value relevance models (Francis et al ., 2004; Van der Meulen et al ., 2007; Barth et al ., 2008) have been commonly used to measure the impact of IFRS on the quality of financial information (Păşcan, 2015; Bhatia and Mulenga, 2019). Prior research has shown mixed results in terms of the value relevance of IFRS adoption.…”

Section: Introductionmentioning

confidence: 99%

The impact of IFRS adoption on the value relevance of accounting information in Saudi Arabia

Alomair

Farley

Yang

2021

Accounting & Finance

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We examined the joint and relative value relevance of book value of equity (BVE) and earnings before (2015–2016), after (2017–2018) and during the comparative year (2016) of mandatory adoption of International Financial Reporting Standards (IFRS) in Saudi Arabia. Results show that the accounting information is jointly value relevant (R2), with no significant change between accounting information prepared under Saudi GAAP and IFRS. However, we found a positive change in the relative value relevance of the BVE after IFRS implementation, mainly related to the introduction of fair value measurement. Differences in value relevance were found across variances in company characteristics.

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Section: Introductionmentioning

confidence: 99%

The impact of IFRS adoption on the value relevance of accounting information in Saudi Arabia

Alomair

Farley

Yang

2021

Accounting & Finance

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“…The International Accounting Standards Council (IASB) has issued international standards for financial reporting (IFRS), which is a set of highquality accounting standards for the purpose of coordinating accounting practices and ensuring consistency in the form of financial statements globally, reduce the cost of addressing financial data and improving the work of financial market efficiency, and since the year 2001 allowed More than 120 countries applying international standards for financial reporting, and to remove there are other countries that have time lines to converge with these standards in the near future Bhatia, mulenga, [31]. The following are some criteria that have contributed mainly to the production of accounting information that carries the qualitative characteristics that the conceptual framework of accounting came:-…”

Section: Review Some Criteria Ifrs Enhanced For Value Relevance Of Ac...mentioning

confidence: 99%

The Impact of Mandatory IFRS Adoption on the Value Relevance of Published Accounting Information: Evidence from Iraqi Private Banks

Chouaibi,

Mutar

2024

AJEBA

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The study aimed to identify the impact of the International Financial Reporting Standards (IFRS) on the value Relevance of accounting information in a sample of banks listed on the Iraq Stock Exchange. The study dealt with the method of analyzing the information content of the annual financial statements published on the Iraq Stock Exchange website, which number (46). Banks. (15) Banks were chosen as a sample for the study for the period (2012-2021). This sample was determined according to two basic conditions: the availability of financial statements for the year 2021 and the banks’ continuation of disclosing their data for the specified years without interruption. The independent variable was measured by financial reporting standards. The international standard (IFRS) was set at a value of (1.0), and the second variable (value Relevance) was measured using the model (Ohlson, 1995). Data analysis was also conducted through the use of statistical methods and tools and the statistical program (stata), and the study concluded that there is a relationship there is a positive moral significance between the application of International Financial Reporting Standards (IFRS) and the value Relevance of published accounting information. This means that the greater the trend towards adopting international financial reporting standards is accompanied by an increase in the levels of value Relevance of accounting information. The study recommended the necessity the Central Bank of Iraq obligates banks listed on the Iraqi Stock Exchange to comply with the requirements of international financial reporting standards, which in turn reduces information asymmetry by disclosing Relevance accounting information to current and prospective investors.

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“…In India too, researchers (Khanna, 2014;Sharma et al, 2012;Vishnani and Shah, 2008;Kaur and Yadav, 2020), documented the same mixed findings. Bhatia and Mulenga (2019) examined 90 empirical studies published globally across continents and summed up that accounting information is relevant across the globe during the IFRS convergence process with a few diverse opinions. A thorough analysis of the literature on the matter across several economies revealed that few academics came to the conclusion that IFRS enforcement had no effect on the caliber of financial reporting, which encouraged the author to carry out further research on the subject.. .Hence, to investigate the effects of IFRS in India, this study aims to derive the following objectives-…”

Section: Review Of Literaturementioning

confidence: 99%

Mandatory IFRS enforcement and value relevance of accounting information in India

Srivastava,

Kulshrestha,

Ranjan Panigrahi

et al. 2023

CyA

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This study investigates the influence of IFRS enforcement on the explanatory power of earnings and book value on the market price in an emerging economy, India over five years that is two years before mandatory IFRS enforcement for 2014-2015 and three years after IFRS enforcement for 2016-2018. Total 3470 firm-year observations were examined by assembling data from the BSE website and the annual reports of the firms for this purpose. The findings of the study conclude that the financial reporting environment has improved after introducing the IFRS, which was reflected through a strong and significant association between market price and its two dominating variables earnings and book values. However, the findings also suggest that earnings have been stronger and more significant predictors of market price post-IFRS enforcement than book values, which showed a negative association with market price and declined after IFRS enforcement. The study also suffers from diverse constraints similar to previous studies such as limited data sets and years coupled with only two variables and suggests future scope for research in diverse angles where researchers can employ the return model, and add more control variables such as cash flows, leverage, size, growth...

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Value Relevance of Accounting Information: A Review of Empirical Evidence Across Continents

Cited by 16 publications

References 76 publications

The impact of IFRS adoption on the value relevance of accounting information in Saudi Arabia

The impact of IFRS adoption on the value relevance of accounting information in Saudi Arabia

The Impact of Mandatory IFRS Adoption on the Value Relevance of Published Accounting Information: Evidence from Iraqi Private Banks

Mandatory IFRS enforcement and value relevance of accounting information in India

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