IDEAS home Printed from https://ideas.repec.org/a/ids/afasfa/v1y2008i1p81-104.html
   My bibliography  Save this article

Liberalisation and the value relevance of accrual accounting information: evidence from the Johannesburg securities exchange

Author

Listed:
  • Minga Negash

Abstract

Using panel data from 118 firms across a time period of 17 years and a battery of tests, this paper examines two research questions that pertain to the expected gains stemming from corporate information liberalisation through the adoption of international accounting (financial reporting) standards. Results indicated that accrual accounting data at aggregate (market-wide) level did not show break point(s) around the time of critical corporate information liberalisation years. At the microlevel, panel data tests on a version of Ohlson's (1995) model showed poor fits, but initially indicated some improvement (adjusted R-squares of between 12% and 25%) in value relevance in the post-information liberalisation period. However, when scale issues were addressed in cross-sectional level-type panel regressions, the difference in the R-squares vanished; suggesting that the value relevance of accounting information did not improve in the post-liberalisation period.

Suggested Citation

  • Minga Negash, 2008. "Liberalisation and the value relevance of accrual accounting information: evidence from the Johannesburg securities exchange," Afro-Asian Journal of Finance and Accounting, Inderscience Enterprises Ltd, vol. 1(1), pages 81-104.
    • Handle: RePEc:ids:afasfa:v:1:y:2008:i:1:p:81-104
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=16892
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:afasfa:v:1:y:2008:i:1:p:81-104. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=214 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.