The value relevance of earnings and book value at Vietnamese listed enterprises

Relevant value is important for information users to make business decisions, and stock prices have an essential relationship to the value relevance about enterprises. The paper aims to investigate the earnings and book value influences on the value relevance of 144 Vietnamese listed enterprises. Se...

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Main Authors: Tran Quoc Thinh, Nguyen Thi Phung, Tran Khanh Lam
Format: Article
Language:English
Published: LLC "CPC "Business Perspectives" 2023-05-01
Series:Investment Management & Financial Innovations
Subjects:
Online Access:https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18168/IMFI_2023_02_Thinh.pdf
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author Tran Quoc Thinh
Nguyen Thi Phung
Tran Khanh Lam
author_facet Tran Quoc Thinh
Nguyen Thi Phung
Tran Khanh Lam
author_sort Tran Quoc Thinh
collection DOAJ
description Relevant value is important for information users to make business decisions, and stock prices have an essential relationship to the value relevance about enterprises. The paper aims to investigate the earnings and book value influences on the value relevance of 144 Vietnamese listed enterprises. Selected data are non-financial enterprises with a wide range of industries to ensure representativeness on the Vietnamese stock market. The research implements stakeholder and signaling theory to explain the hypotheses of the model related to earnings per share and book value per share. Time series data are analyzed for three years from 2018 to 2020. The quantitative method is applied to test hypotheses. The results determine that the fixed effects model is suitable. The results also show that the earnings per share positively affect the stock price, but book value per share has a negative impact on the stock price. The paper provides some policy suggestions for investors to make reasonable decisions using relevant information about listed enterprises in Vietnam.
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spelling doaj.art-0f1a3c3f96ee43af96c4190e117467c82023-07-20T08:58:57ZengLLC "CPC "Business Perspectives"Investment Management & Financial Innovations1810-49671812-93582023-05-0120218219210.21511/imfi.20(2).2023.1618168The value relevance of earnings and book value at Vietnamese listed enterprisesTran Quoc Thinh0https://orcid.org/0000-0003-1504-8122Nguyen Thi Phung1https://orcid.org/0009-0007-3558-0104Tran Khanh Lam2https://orcid.org/0000-0003-2985-7860Ph.D., Associate Professor, Faculty of Accounting and Auditing, Industrial University of Ho Chi Minh CityMAcc, Faculty of Accounting and Auditing, Industrial University of Ho Chi Minh CityPh.D., Faculty of Accounting and Auditing, Industrial University of Ho Chi Minh CityRelevant value is important for information users to make business decisions, and stock prices have an essential relationship to the value relevance about enterprises. The paper aims to investigate the earnings and book value influences on the value relevance of 144 Vietnamese listed enterprises. Selected data are non-financial enterprises with a wide range of industries to ensure representativeness on the Vietnamese stock market. The research implements stakeholder and signaling theory to explain the hypotheses of the model related to earnings per share and book value per share. Time series data are analyzed for three years from 2018 to 2020. The quantitative method is applied to test hypotheses. The results determine that the fixed effects model is suitable. The results also show that the earnings per share positively affect the stock price, but book value per share has a negative impact on the stock price. The paper provides some policy suggestions for investors to make reasonable decisions using relevant information about listed enterprises in Vietnam.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18168/IMFI_2023_02_Thinh.pdfbook valuedisclosureearningsfinancial reportinformation quality
spellingShingle Tran Quoc Thinh
Nguyen Thi Phung
Tran Khanh Lam
The value relevance of earnings and book value at Vietnamese listed enterprises
Investment Management & Financial Innovations
book value
disclosure
earnings
financial report
information quality
title The value relevance of earnings and book value at Vietnamese listed enterprises
title_full The value relevance of earnings and book value at Vietnamese listed enterprises
title_fullStr The value relevance of earnings and book value at Vietnamese listed enterprises
title_full_unstemmed The value relevance of earnings and book value at Vietnamese listed enterprises
title_short The value relevance of earnings and book value at Vietnamese listed enterprises
title_sort value relevance of earnings and book value at vietnamese listed enterprises
topic book value
disclosure
earnings
financial report
information quality
url https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/18168/IMFI_2023_02_Thinh.pdf
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