Financial Accounting
Narges Hamidian; Golnaz Eshaghi
Abstract
The relevance and usefulness of accounting information can be measured by the simultaneous relationship between accounting information, returns or stock market prices. The Comparability of accounting information, as a qualitative feature of information, increases the value relevance of accounting information. ...
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The relevance and usefulness of accounting information can be measured by the simultaneous relationship between accounting information, returns or stock market prices. The Comparability of accounting information, as a qualitative feature of information, increases the value relevance of accounting information. Also opacity in financial reporting through the corporate financial system increases stock volatility and, as a result, increases investment risk and investor distrust. Accordingly, the purpose of this study is the effect of comparability of financial statements and opacity in financial reporting on the value relevance between earnings and book value per share. Accordingly, a sample of 137 companies was selected from the companies listed on the Tehran Stock Exchange during the years 2013 to 2019 and to test the hypotheses, a multivariate regression model using the panel data method was used. The results showed that earnings and book value per share have a value relevance and the comparability of financial statements increases the value relevance of earnings per share. But contrary to the literature, comparability reduces the value relevance of book value per share. On the other hand, the opacity of financial reporting reduces the value relevance of book value per share due to comparability of financial statements, but does not affect the value relevance of earnings per share due to comparability.
Ghasem Blue; Mohammad Marfou; Arian Ghahremani
Abstract
The purpose of the present study is to explain the effect of accounting information quality on corporate equity cost and to investigate the moderating role of information asymmetry and the simultaneous moderating role of this variable and the comparability of financial statements in this context. The ...
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The purpose of the present study is to explain the effect of accounting information quality on corporate equity cost and to investigate the moderating role of information asymmetry and the simultaneous moderating role of this variable and the comparability of financial statements in this context. The research timeframe for this period is 5 years from the beginning of 2013 until the end of 2017 and the sample includes 91 companies listed in Tehran Stock Exchange. Multivariate regression was used for statistical analysis. The results of the analysis indicate that the quality of accounting information has an adverse effect on equity cost, so that the higher the quality of accounting information, the lower the cost of equity; and vice versa. Also, information asymmetry has a direct relationship with this effect. But the simultaneous impact of comparability of financial statements and information asymmetry on the impact of accounting information quality on equity costs is not confirmed. The results of the first two hypotheses are similar to those of Emof et al. (2018), which examined the effect of accounting information quality on equity cost in the United States, but the third hypothesis suggests that it is inconsistent.
