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http://ir.lib.seu.ac.lk/handle/123456789/533| Title: | Value relevance of accounting information |
| Other Titles: | evidence from Sri Lanka |
| Authors: | Musthafa, Sulaima Lebbe Jahfer, Athambawa |
| Keywords: | Accounting Information Book Value Per Share Earnings Per Share Operating Cash Flow Per Share Value Relevance |
| Issue Date: | 6-Jul-2013 |
| Publisher: | South Eastern University of Sri Lanka |
| Citation: | Proceedings of the Third International Symposium 2013, pp. 21-30 |
| Abstract: | This paper investigates the value relevance of accounting information in Sri Lanka. The study uses book value per share (BVPS), earrings per share (EPS) and operating cash flow per share (OCFPS) as the independent variables and market value per share (MVPS) as the dependent variable. Sample of the study includes 310 firm-year observations from 5 largest industry sectors. Ohlson’s (1995) price model and an alternative model with operating cash flow per share are employed. Study finds that BVPS, EPS and OCFPS all have a positive and statistically significant relationship with market value per share. This finding proves that the accounting information is value relevant in Sri Lanka. Comparison of Ohlson model with the alternative model developed in this study reveals that both models are value relevant to Sri Lankan data. However, the alternative model with operating cash flow per share is more informative than the original Ohlson’s (1995) price model in Sri Lanka. |
| URI: | http://ir.lib.seu.ac.lk/handle/123456789/533 |
| ISSN: | 9789556270426 |
| Appears in Collections: | 3rd International Symposium - 2013 |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| Value Relevance of Accounting Information.pdf | 131.56 kB | Adobe PDF |  View/Open |
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