Changes in the Value Relevance of Accounting Information and Identifying the Factors Affecting the Value Relevance

• Main Authors: Ahmad Ahmadpour, Eyyed Amin Hadiyan
• Format: Article
• Language: fas
• Published: University of Tehran 2015-03-01
• Series: بررسی‌های حسابداری و حسابرسی
• Subjects: Accounting information; Accounting standards; value relevance
• Online Access: https://acctgrev.ut.ac.ir/article_53665_be18190e06a43d74c92f1d138703f892.pdf

Accounting information for decision making purposes is essential for financial accounting users and can be useful by accompanying with value relevance. The aim is investigation the changes of accounting information´s value relevance and related factors. We investigated the accounting information´s value relevance of 2,970 observations by four models and OLS method during 18 years (1996-2013) and also, 100 samples of companies listed in Tehran Stock Exchange during eight years (2006-2013) for identifying the factors. We found that after using the first accounting standards the value relevance of balance sheet relation is increasing. In addition we found that there is meaningful and negative relationship between changes in the value relevance of accounting information and company´s size, meaningful and positive relationship between changes in the value relevance of accounting information and company´s growth and also meaningful and negative relationship between changes in the value relevance of accounting information and company´s debt.