|
IFRS and the Value Relevance of Earnings: Evidence from the Emerging Market of Romania
Andrei Filip,
University of Geneva/ HEC Montreal
ABSTRACT. There is an abundant literature on the value relevance of accounting data, defined as the ability of accounting information to summarize information that affects share values (Francis and Schipper, 1999). Most of these studies were conducted in highly-developed economies, and evidence from emerging markets is much more limited. Measuring the value relevance of accounting earnings in such markets may be of particular interest. The implementation of IFRS as national standards had a significant impact on the information environment. Previously, the financial reporting under statutory accounting standards was primarily intended to provide information for government statistics, fiscal authorities and creditors. Under the new accounting paradigm investors are the primary users of financial information. As the primary goal of the reform was to increase the investors’ confidence in financial reporting, we would expect an increase in the value relevance of accounting data.
Full-Text is no longer available online. Please contact the author(s) for more information about this manuscript.
Back to Session Listing
|