Does financial disclosure influence the value relevance of accounting information?
Purpose– The paper aims to examine the influence of financial disclosure (FD) level and time on the value relevance of earnings, book value, and cash flows relative to three share price proxies, namely average annual share price, annual closing share price, and share price after a three-month period...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Emerald Group Publishing Limited
2013
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/19178/1/EBS%20CME%20%206%203-4%20%202013%20216-232.pdf |
| _version_ | 1803627676599058432 |
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| author | Shamki, Dhiaa Abdul Rahman, Azhar |
| author_facet | Shamki, Dhiaa Abdul Rahman, Azhar |
| author_sort | Shamki, Dhiaa |
| collection | UUM |
| description | Purpose– The paper aims to examine the influence of financial disclosure (FD) level and time on the value relevance of earnings, book value, and cash flows relative to three share price proxies, namely average annual share price, annual closing share price, and share price after a three-month period following the financial year-end for Jordanian companies.Design/methodology/approach – The paper employs price model to examine the influence of FD level and time on the value relevance of three accounting variables relative to three share price proxies for 91 Jordanian companies (consisting of 5,460 observations) within 2004-2009.Findings– Relative to three share price proxies, the findings proved that FD level and time have a significant influence on the value relevance of book value, but not for cash flows. Also, FD level and time have a significant influence on the value relevance of earnings relative to annual closing share price, while they are not relative to share price after a three-month period following the financial year-end.FD time has a significant influence on the value relevance of earnings relative to the average annual share price.Annual closing share price is the most reliable in indicating value relevance of accounting information.Originality/value – The paper confirms that there is a shift away from earnings towards book value as the basis for firm valuation.Market participants might be able to conclude the firm value through the value relevance of accounting information influenced by company's FD. |
| first_indexed | 2024-07-04T06:09:51Z |
| format | Article |
| id | uum-19178 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:09:51Z |
| publishDate | 2013 |
| publisher | Emerald Group Publishing Limited |
| record_format | dspace |
| spelling | uum-191782016-11-10T06:56:33Z https://repo.uum.edu.my/id/eprint/19178/ Does financial disclosure influence the value relevance of accounting information? Shamki, Dhiaa Abdul Rahman, Azhar HF5601 Accounting Purpose– The paper aims to examine the influence of financial disclosure (FD) level and time on the value relevance of earnings, book value, and cash flows relative to three share price proxies, namely average annual share price, annual closing share price, and share price after a three-month period following the financial year-end for Jordanian companies.Design/methodology/approach – The paper employs price model to examine the influence of FD level and time on the value relevance of three accounting variables relative to three share price proxies for 91 Jordanian companies (consisting of 5,460 observations) within 2004-2009.Findings– Relative to three share price proxies, the findings proved that FD level and time have a significant influence on the value relevance of book value, but not for cash flows. Also, FD level and time have a significant influence on the value relevance of earnings relative to annual closing share price, while they are not relative to share price after a three-month period following the financial year-end.FD time has a significant influence on the value relevance of earnings relative to the average annual share price.Annual closing share price is the most reliable in indicating value relevance of accounting information.Originality/value – The paper confirms that there is a shift away from earnings towards book value as the basis for firm valuation.Market participants might be able to conclude the firm value through the value relevance of accounting information influenced by company's FD. Emerald Group Publishing Limited 2013 Article PeerReviewed application/pdf en https://repo.uum.edu.my/id/eprint/19178/1/EBS%20CME%20%206%203-4%20%202013%20216-232.pdf Shamki, Dhiaa and Abdul Rahman, Azhar (2013) Does financial disclosure influence the value relevance of accounting information? Education, Business and Society: Contemporary Middle Eastern Issues, 6 (3/4). pp. 216-232. ISSN 1753-7983 http://doi.org/10.1108/EBS-05-2013-0014 doi:10.1108/EBS-05-2013-0014 doi:10.1108/EBS-05-2013-0014 |
| spellingShingle | HF5601 Accounting Shamki, Dhiaa Abdul Rahman, Azhar Does financial disclosure influence the value relevance of accounting information? |
| title | Does financial disclosure influence the value relevance of accounting information? |
| title_full | Does financial disclosure influence the value relevance of accounting information? |
| title_fullStr | Does financial disclosure influence the value relevance of accounting information? |
| title_full_unstemmed | Does financial disclosure influence the value relevance of accounting information? |
| title_short | Does financial disclosure influence the value relevance of accounting information? |
| title_sort | does financial disclosure influence the value relevance of accounting information |
| topic | HF5601 Accounting |
| url | https://repo.uum.edu.my/id/eprint/19178/1/EBS%20CME%20%206%203-4%20%202013%20216-232.pdf |
| work_keys_str_mv | AT shamkidhiaa doesfinancialdisclosureinfluencethevaluerelevanceofaccountinginformation AT abdulrahmanazhar doesfinancialdisclosureinfluencethevaluerelevanceofaccountinginformation |