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The Relevance Of Accounting Information On The Romanian Capital Market In The Era Of Artificial Intelligence: Transformations And Opportunities

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  • Andrei CAREA
  • Sorina Ioana MISU

Abstract

This study analyzes the relevance of accounting information for companies listed on the Romanian capital market, in a context shaped by alignment with the International Financial Reporting Standards (IFRS) and advancements in artificial intelligence (AI) technologies. In the first part, the paper explores the convergence of the Romanian accounting system with IFRS, examining the evolution of accounting information relevance during the 2008-2021 period and the impact of adopting international standards on financial value and transparency. Using Ohlson's (1995) regression model, the study investigates the correlations between stock prices and accounting indicators, such as book value per share (BV) and earnings per share (EPS), both in the pre-IFRS adoption period and the post-adoption period. The results indicate positive correlations between stock prices and BV and EPS, demonstrating that IFRS contributes to improving the relevance of accounting information for investors. In the second part, the study introduces perspectives brought by AI, highlighting how it is transforming the field of accounting through its advanced data processing and predictive analysis capabilities. AI facilitates a better assessment of financial performance and enhances investors' access to relevant data, contributing to transparency and comparability in financial reporting. Thus, the integration of AI offers new opportunities for accounting professionals and regulatory authorities to align financial practices with international requirements and modern market needs. The study concludes that AI technologies, combined with IFRS, can enhance the accuracy and utility of accounting information, maximizing its relevance for investment decisions in the digital era.

Suggested Citation

  • Andrei CAREA & Sorina Ioana MISU, 2024. "The Relevance Of Accounting Information On The Romanian Capital Market In The Era Of Artificial Intelligence: Transformations And Opportunities," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 18(1), pages 280-289, November.
    • Handle: RePEc:rom:mancon:v:18:y:2024:i:1:p:280-289
    DOI: 10.24818/IMC/2024/03.02
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    2. Mariarosaria Agostino & Danilo Drago & Damiano Silipo, 2011. "The value relevance of IFRS in the European banking industry," Review of Quantitative Finance and Accounting, Springer, vol. 36(3), pages 437-457, April.
    3. Lavinia Minodora Takacs, 2012. "The Value Relevance Of Earnings In A Transition Economy: Evidence From Romanian Stock Market," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(14), pages 1-8.
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