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Accounting Information, Value Relevance, and Investors Behavior in the Egyptian Equity Market Aiman A. Ragaba and Mohammad M. Omranb,1 aCollege of Management & Technology, Arab Academy for Science.

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OLS regression was employed in hypothesis testing. Findings revealed that adopting IFRS reduced the value relevance of accounting information in the sampled companies. But EPS, DPS and BVS revealed a decrease in the post-IFRS period. It also showed a positive association with MPS.

In this study, the effect of four factors; being profitable or loss generating, company size, earnings stability and company growth on the value relevance of accounting information have been studied.

The value relevance of accounting information means the ability of accounting information to explain firm value (Beaver, 1968). While Gu (2002) provides not much different a definition that the value relevance is the ability to explain (explanatory power) accounting information to stock prices or share returns.

Findings: We find that value relevance of accounting number, profitability, liquidity, and operational efficiency are positively related to stock price reaction.

For value relevance, the IFRS-based model had a higher R2 and positive significant coefficients for both net profit and book value compared to the GAAP-based model. In the model of profit on stock returns, the IFRS model also had a higher R2 and positive coefficient compared to the UK GAAP model.

The study found that the IFRS convergence reduces the scope for earnings management, is related to more timely loss recognition and leads to more value relevant accounting measures.

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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232