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The Value Relevance Of Financial Information Under The Influence Of Country Risks. The Case Of The Indian Listed Companies

Author

Listed:
  • IOAN-BOGDAN ROBU

    () (Alexandru Ioan Cuza University of Iasi)

  • Costel ISTRATE

    () (Alexandru Ioan Cuza University of Iasi)

  • Mihai CARP

    () (Alexandru Ioan Cuza University of Iasi)

  • CRISTIAN POPESCU

    () (Alexandru Ioan Cuza University of Iasi)

  • MIHAELA-ALINA ROBU

    () (Alexandru Ioan Cuza University of Iasi)

Abstract

In the decision-making process investors need quality financial information based on reported accounting numbers. Such numbers are present in financial statements and must meet a series of fundamental characteristics, such as relevance and faithful representation. The present paper aims to analyse and assess the value relevance of financial information on the financial market in India under the influence of the main country risk components (i.e. economic risk and freedom to set up businesses, corruption control, financial, fiscal, monetary and investment freedom). The research was carried out on a sample of companies listed on the regulated market in India between 2006 and 2014. The results of applying general linear models have shown that, over time, the country risk can have a significant influence on the value relevance of the financial statements reported at the financial market level.

Suggested Citation

  • IOAN-BOGDAN ROBU & Costel ISTRATE & Mihai CARP & CRISTIAN POPESCU & MIHAELA-ALINA ROBU, 2016. "The Value Relevance Of Financial Information Under The Influence Of Country Risks. The Case Of The Indian Listed Companies," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 18, pages 77-93, December.
  • Handle: RePEc:aic:revebs:y:2016:j:18:istratec
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Indian capital markets; financial information; value relevance; risk country;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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