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Statistical Assessment of the Value Relevance of Financial Information Reported by Romanian Listed Companies

Author

Listed:
  • Elisabeta Jaba

    (Alexandru Ioan Cuza University of Iasi)

  • Ioan-Bogdan Robu

    (Alexandru Ioan Cuza University of Iasi)

  • Costel Istrate

    (Alexandru Ioan Cuza University of Iasi)

  • Christiana Brigitte Balan

    (Alexandru Ioan Cuza University of Iasi)

  • Mihai Roman

    (Bucharest University of Economic Studies)

Abstract

Romanian listed companies must periodically report relevant financial information useful to all investors in the decision-making process. The purpose of this study is to statistically assess the value relevance of financial information reported by Romanian companies listed on the Bucharest Stock Exchange (BSE). The study was conducted on a sample of 67 BSE companies during 2006-2012. To assess the value relevance, we analyzed the influence of the principal indicators related to financial position and performance calculated using information from annual financial statements and the growth ratio of the daily share price. Panel data analysis was used to assess monthly the value relevance of financial information. Research results show that financial information has value relevance for investors but differs significantly in time and from one firm to another.

Suggested Citation

  • Elisabeta Jaba & Ioan-Bogdan Robu & Costel Istrate & Christiana Brigitte Balan & Mihai Roman, 2016. "Statistical Assessment of the Value Relevance of Financial Information Reported by Romanian Listed Companies," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 27-42, June.
    • Handle: RePEc:rjr:romjef:v::y:2016:i:2:p:27-42
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    References listed on IDEAS

    as
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    Citations

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    Cited by:

    1. MiloÅŸ Laura Raisa & MiloÅŸ Marius Cristian, 2018. "Accounting Disclosure and Stock Market Reaction. Empirical Analysis on Bucharest Stock Exchange," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 643-648, December.
    2. Ioan-Bogdan ROBU & Ionut Viorel HERGHILIGIU & Bogdan BUDEANU & Sorin CHIRU, 2019. "Assessing Comparability of Accounting Information Using Panel Data Analysis," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 17(155), pages 441-441.
    3. Stefan-Cosmin DANILA & Ioan-Bogdan ROBU, 2019. "The Influence of Cryptocurrency Bitcoin over the Romanian Capital Market," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 17(155), pages 507-507.
    4. Rao, Purnima & Goyal, Nisha & Kumar, Satish & Hassan, M. Kabir & Shahimi, Shahida, 2021. "Vulnerability of financial markets in India: The contagious effect of COVID-19," Research in International Business and Finance, Elsevier, vol. 58(C).
    5. Madalina Ecaterina Popescu & Victor Dragotă, 2018. "What Do Post-Communist Countries Have in Common When Predicting Financial Distress?," Prague Economic Papers, Prague University of Economics and Business, vol. 2018(6), pages 637-653.
    6. Elisabeta JABA & Ioan-Bogdan ROBU & Christiana Brigitte BALAN, 2017. "Panel data analysis applied in financial performance assessment," Romanian Statistical Review, Romanian Statistical Review, vol. 65(2), pages 3-20, June.
    7. repec:prg:jnlpep:v:preprint:id:664:p:1-17 is not listed on IDEAS

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    More about this item

    Keywords

    financial information; value relevance; stock price; panel data analysis;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C58 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Financial Econometrics
    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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