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Value Relevance of Accounting Information in the United Arab Emirates

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  • Jamal Barzegari Khanagha

    (University of Yazd, Iran)

Abstract

This paper examines the value relevance of accounting information in per and post-periods of International Financial Reporting Standards implementation using the regression and portfolio approaches for sample of the UAE companies. The results obtained from a combination of regression and portfolio approaches, show accounting information is value relevant in UAE stock market. A comparison of the results for the periods before and after adoption, based on both regression and portfolio approaches, shows a decline in value relevance of accounting information after the reform in accounting standards. It could be interpreted to mean that following to IFRS in UAE didn't improve value relevancy of accounting information. However, results based on and portfolio approach shows that cash flows' incremental information content increased for the post-IFRS period.

Suggested Citation

  • Jamal Barzegari Khanagha, 2011. "Value Relevance of Accounting Information in the United Arab Emirates," International Journal of Economics and Financial Issues, Econjournals, vol. 1(2), pages 33-45, June.
    • Handle: RePEc:eco:journ1:2011-02-2
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    Cited by:

    1. Piotr Bolibok, 2014. "The impact of IFRS on the value relevance of accounting data of banks listed on the Warsaw Stock Exchange," Copernican Journal of Finance & Accounting, Uniwersytet Mikolaja Kopernika, vol. 3(1), pages 33-43.
    2. Meena Bhatia & Mwila J. Mulenga, 2019. "Value Relevance of Accounting Information: A Review of Empirical Evidence Across Continents," Jindal Journal of Business Research, , vol. 8(2), pages 179-193, December.
    3. Mohammad Aladwan, 2018. "Accounting Measurement Revolution and Market Value," Modern Applied Science, Canadian Center of Science and Education, vol. 12(11), pages 279-279, November.
    4. Wafaa Salah & Abdallah Abdel-Salam, 2019. "The Effects of International Financial Reporting Standards on Financial Reporting Quality," Athens Journal of Business & Economics, Athens Institute for Education and Research (ATINER), vol. 5(3), pages 221-242, July.
    5. Taibat A. Atoyebi & Yinka M. Salaudeen & Jerry Y. A. Onyilokwu, 2018. "International Financial Reporting Standards Adoption and Value Relevance of Financial Information of Quoted Healthcare Firms in Nigeria," Applied Economics and Finance, Redfame publishing, vol. 5(4), pages 174-184, July.
    6. Fahim Javed & Nargis Akhtar & Muhammad Fayyaz Sheikh & Muhammad Shahid Rasheed, 2023. "Social Anxiety, Self-efficacy and Academic Achievement in Matric Students of Lahore Pakistan," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(1), pages 28-37, March.
    7. Ojo, Marianne & Van Akkeren, Jeanette, 2015. "Evolving roles of accountants as resources for greater accountability in financial reporting, legislative and judicial processes," MPRA Paper 68114, University Library of Munich, Germany.
    8. Habeeb Mohamed Nijam & Athambawa Jahfer, 2018. "IFRS Adoption and Value Relevance of Accounting Information: Evidence from a Developing Country," Global Business Review, International Management Institute, vol. 19(6), pages 1416-1435, December.

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    More about this item

    Keywords

    Value Relevance; IFRS; Accounting Information; UAE.;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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