The Usefulness of the Most Widely Reported Dutch Financial Statement Numbers to Stock Market Investors
AbstractMuch of the literature on the usefulness of company financial statement information focuses on the United States and the United Kingdom. But, these two countries are characterized by similar and rigid regulatory and enforcement regime. This study provides direct evidence from the Netherlands – a country with liberal financial reporting environment and different corporate governance regime. It empirically examines the information content of annual and semi-annual earnings announcements and the long-term association between stock returns and some widely reported financial statement variables. The evidence suggests that earnings and dividends disclosures made by Dutch companies are useful to stock market investors and the extent of the usefulness is not that modest as often perceived. However, the Dutch practice of reporting accounting cash flows as a summary performance measure does not have significant incremental usefulness.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 1997-58.
Date of creation: 1997
Date of revision:
Contact details of provider:
Web page: http://center.uvt.nl
Financial reporting; capital market; information content; earnings response; value relevance;
Find related papers by JEL classification:
- M40 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - General
- M41 - Business Administration and Business Economics; Marketing; Accounting - - Accounting - - - Accounting
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael J. Brennan, 1995. "A Perspective On Accounting And Stock Prices," Journal of Applied Corporate Finance, Morgan Stanley, vol. 8(1), pages 43-53.
- Collins, Daniel W. & Kothari, S. P. & Shanken, Jay & Sloan, Richard G., 1994. "Lack of timeliness and noise as explanations for the low contemporaneuos return-earnings association," Journal of Accounting and Economics, Elsevier, vol. 18(3), pages 289-324, November.
- Beaver, William & Lambert, Richard & Morse, Dale, 1980. "The information content of security prices," Journal of Accounting and Economics, Elsevier, vol. 2(1), pages 3-28, March.
- Dechow, Patricia M., 1994. "Accounting earnings and cash flows as measures of firm performance : The role of accounting accruals," Journal of Accounting and Economics, Elsevier, vol. 18(1), pages 3-42, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Richard Broekman).
If references are entirely missing, you can add them using this form.