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Moderating Effects of Financial Transparency on Accounting Information¡¯s Transmission to Share Prices: The Case Study of Non-Financial Companies Listed at BRVM

Author

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  • Aboudou Ouattara

Abstract

The study of the moderating effect of non-financial companies¡¯ financial transparency on their share values in the context of African stock exchanges is part of a dual perspective. At a first stage, it questions financial theory¡¯s state of art on financial statement disclosure practices of listed companies and their anticipated influence on their shares¡¯ prices. Thereafter, based on the investigation of the specific case of the WAEMU¡¯s Regional capital market (BRVM), a financial place common to eight countries, it highlights the level of transparency in financial communication of companies listed in Africa¡¯s capital market. In doing so, it provides a dual enrichment. First, it highlights the enrichment that researches on Africa¡¯s context can provide to financial theory and its contribution to the reading of African Management practices. In a complementary fashion, it helps to discover the specific practices in Africa and their consequences on market functioning. It also questions the validity of the conclusions drawn from researches made in international environment in the African context.

Suggested Citation

  • Aboudou Ouattara, 2019. "Moderating Effects of Financial Transparency on Accounting Information¡¯s Transmission to Share Prices: The Case Study of Non-Financial Companies Listed at BRVM," Applied Economics and Finance, Redfame publishing, vol. 6(5), pages 35-52, September.
    • Handle: RePEc:rfa:aefjnl:v:6:y:2019:i:5:p:35-52
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    References listed on IDEAS

    as
    1. Barth, Mary E. & Beaver, William H. & Landsman, Wayne R., 2001. "The relevance of the value relevance literature for financial accounting standard setting: another view," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 77-104, September.
    2. Lawrence H. Summers, 1982. "Do We Really Know That Financial Markets Are Efficient?," NBER Working Papers 0994, National Bureau of Economic Research, Inc.
    3. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    4. Patel, Sandeep A. & Balic, Amra & Bwakira, Liliane, 2002. "Measuring transparency and disclosure at firm-level in emerging markets," Emerging Markets Review, Elsevier, vol. 3(4), pages 325-337, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    financial transparency; financial statements; value relevance; event study; developing markets; BRVM;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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