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

Document Type : Research Paper

Authors

1 Prof. Faculty of Economical and Administrative Science, Mazandaran University, Babolsar, Iran

2 ‎Instructor, Sarooyeh, Non-profit, Non-governmental Organization, Sari, Iran

Abstract

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.

Keywords

References

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