e-journal

Does financial disclosure influence the value relevance of accounting information?

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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 thefinancial year-end.FDtime
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.

Keywords Jordan, Value relevance, Accounting information, Financial disclosure level,Financial disclosure time

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Informasi Detail

Judul Seri

Education, Business and Society: Contemporary Middle Eastern Issues

No. Panggil

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Penerbit

: Emeral Group., 2013

Deskripsi Fisik

Education, Business and Society: Contemporary Middle Eastern Issues Vol. 6 No. 3/4, 2013 pp. 216-232

Bahasa

English

ISBN/ISSN

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Klasifikasi

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Tipe Isi

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Tipe Media

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Tipe Pembawa

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Edisi

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Subjek

AKUNTANSI

Info Detail Spesifik

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Pernyataan Tanggungjawab

Asmawati/Syahrial

Versi lain/terkait

Lampiran Berkas

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