Accounting, Cash Flow and Value Relevance
Accounting, Cash Flow and Value Relevance

Author: Francesco Paolone

Publisher: Springer Nature

Published: 2020-07-29

Total Pages: 116

ISBN-13: 3030506886

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Although the concept “Cash is King” is today widely recognized, the cash flow statement was rather neglected until the EU accounting regulators discovered its relevance in explaining the real value of the business. This book investigates the value relevance of the operating cash flow as reported under the International Financial Reporting Standards (IAS/IFRS) for the largest European listed companies and US listed companies in the past recent years. Using the model based on the valuation theory developed by Ohlson, which measures the market value of equity as a function of accounting variables, the author concludes that operating cash flow represents a significant variable in determining the value relevance of the largest European and US listed companies. These findings provide siginificant implications for standard setters and support the continued requirements for disclosure of cash flow information under IAS 7.

Value Relevance of Accounting Information in Capital Markets
Value Relevance of Accounting Information in Capital Markets

Author: Ojo, Marianne

Publisher: IGI Global

Published: 2016-12-12

Total Pages: 334

ISBN-13: 1522519017

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Among banking industries and insurance and security sectors, systemic risk and information uncertainty can generate negative consequences. By developing solutions to address such issues, financial regulation initiatives can be optimized. Value Relevance of Accounting Information in Capital Markets is an essential reference source for the latest scholarly research on the importance of information asymmetries and uncertainties and their effects on the overall regulation of financial industries. Featuring extensive coverage on a wide range of perspectives, such as financial reporting standards, investor confidence, and capital flows, this publication is ideally designed for professionals, accountants, and academics seeking current research on the effects of the underlying elements in investing.

The Value Relevance of International Financial Reporting Standards
The Value Relevance of International Financial Reporting Standards

Author: Mihaela Ionascu

Publisher:

Published: 2018

Total Pages: 24

ISBN-13:

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The paper explores the benefits of global financial reporting models for developing countries, discussing the case of Romania, which, at the recommendations of the World Bank and the International Monetary Fund, exceeded the minimum requirements of the European Union, by imposing the full adoption of the International Financial Reporting Standards (IFRS) in individual financial statements of listed companies. Using regression analysis and decomposition techniques, the paper explores the evolution in value relevance of financial variables based on pre-(2009-2012) and post-(2014-2016) adoption samples, showing that after IFRS adoption financial information becomes significantly more relevant for equity valuations. We also provide empirical evidence showing that the degree of relevance for stock valuation, as well as the IFRS impact varies across types of firms. Overall, our findings tend to indicate the success of the financial reporting reform, which could be relevant for other jurisdictions facing similar decisions.

Global Comparability of Financial Reporting Under IFRS
Global Comparability of Financial Reporting Under IFRS

Author: Francesco De Luca

Publisher: Springer Nature

Published: 2022-11-14

Total Pages: 137

ISBN-13: 3031151569

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The globalization of financial markets worldwide has progressively pushed toward simultaneous globalization of accounting information. Thus, during the last 50 years, categories of preparers, users, and regulators have devoted their efforts to support the global comparability of financial reporting aiming at favoring the comparison of corporates’ financial performances at a cross-country level. In the same vein, IASB, national standard setters, and jurisdictions have participated in and given momentum to this process. At the same time, academic research has followed this process and tried to build a theoretical framework to address the related issues, to assess the impact on preparers, users, and regulators, while defining hindrances and obstacles to the comparability of financial reporting especially in an IFRS environment. In this context, this book reviews research studies on the comparability of financial reporting at a global level as well as highlights empirical analyses that demonstrate the extent to which global comparability has been achieved, and how it enhances value relevance of earnings across countries. It also looks at the cross-country investors’ perspectives by shaping the empirical analysis to provide further insights on the role of the "Big Four" auditing services in enhancing the comparability of earnings. The book provides an original contribution to the current debate about the comparability of financial reporting under IFRS and will be useful for researchers in the field.

The Value Relevance of Earnings and Cash Flows Under International Financial Reporting Standards
The Value Relevance of Earnings and Cash Flows Under International Financial Reporting Standards

Author: Konstantinos Papadatos

Publisher:

Published: 2013

Total Pages:

ISBN-13:

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The aim of this study is to investigate the value relevance of earnings and cash flows, after the mandatory adoption of International Financial Reporting Standards (IFRS) in Greece. According to accounting literature, value relevance is defined as the ability of financial information contained in the financial statements to reflect the value of the company, when the latter is based on share prices. The presentation of yearly cross-sectional regressions for the period 2005 to 2010 revealed that cash flows under IFRS do not contain incremental information as compared to the earnings under IFRS, when both cash flows and earnings are included in the same model.

Research, Standard Setting, and Global Financial Reporting
Research, Standard Setting, and Global Financial Reporting

Author: Mary E. Barth

Publisher: Now Publishers Inc

Published: 2007

Total Pages: 109

ISBN-13: 1601980086

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Research, Standard Setting, and Global Financial Reporting aids researchers in conducting research relevant to global financial reporting issues, particularly those of interest to financial reporting standard setters. Research, Standard Setting, and Global Financial Reporting describes the relation between research and standard-setting issues; explains how a variety of research designs can be used to address questions motivated by standard-setting issues, including valuation research and event studies; offers examples of research addressing a specific global standard-setting issue - use of fair value in measuring accounting amounts; offers further opportunities for future research on specific standard-setting topics by providing motivating questions relating to the major topics on the agendas of the FASB and IASB; explains how the IASB aims to achieve its mission of developing a single set of high quality accounting standards that are accepted worldwide; summarizes extant evidence on the relative quality of accounting amounts across global standard-setting regimes and whether global financial reporting is achievable or even desirable. Research, Standard Setting, and Global Financial Reporting examines opportunities for future research on issues related to globalization of financial reporting by identifying motivating questions that are potentially avenues for future research.

Value Relevance of Accounting Information
Value Relevance of Accounting Information

Author: Tamer Elshandidy

Publisher:

Published: 2018

Total Pages: 39

ISBN-13:

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Without making any distinction of the applicable accounting standards, this paper investigates, firstly, the value relevance of accounting information from 1999 to 2012 in different segments of the Chinese stock market. This investigation includes A-shares, prepared under Chinese Accounting Standards (CAS) for domestic firms; B-shares, prepared under either the International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS) for both domestic and overseas firms; and H-shares prepared under either the IAS or Hong Kong GAAP for Hong Kong and overseas firms. Then, the paper examines whether or not the converged IFRS with CAS, applicable from 2007 onwards, is more value relevant when compared with prior to the 2007's standards (CAS, IAS, Hong Kong GAAP for A-, B-, and H-share markets, respectively). Based on 34,020 firm-year observations and after controlling for industry- and year-fixed effects, the findings suggest that accounting information is value relevant with A- and B-share markets, whilst it is partially relevant with the H-share market. The paper finds that the converged IFRS with CAS is more value relevant in A- and B-shares and it is partially more value relevant with the H-share market. These findings have implications for both policymakers and investors since they provide further empirical evidence for the current policy procedure which harmonizes local GAAP with IFRS.

Accounting in Central and Eastern Europe
Accounting in Central and Eastern Europe

Author: Catalin Albu

Publisher: Emerald Group Publishing

Published: 2013-12-05

Total Pages: 358

ISBN-13:

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Countries in Central and Eastern Europe (CEE), most of them former components of the communist bloc, have suffered diverse influences over time. Historically, the advent of communism in the 1950s has stopped the economic and political development of these countries. Its fall during the late 1980s and early 1990s triggered severe changes in the economic and social environment, with profound consequences on the countries' accounting and business models. The accounting regulatory process of these countries has mostly been a public one, although some countries also involved private sector and professional bodies. With economic and political reforms these countries are now reforming their accounting systems with for example the adoption of International Accounting Standards/International Financial Reporting Standards (IFRS). Additionally, the CEE countries' political will to join the European Union compelled the regulators to ensure a high level of harmonization with the European Directives. This volume present theoretical and empirical papers that will further our understanding of accounting issues in CEE countries.