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The relationship of accounting comparability between the profit value relevance and book value

Author

Listed:
  • Sama Ojaghi

    (Naser Khosrow Higher Education Institute of Saveh, Saveh, Iran)

  • Majid Moradi

    (Naser Khosrow Higher Education Institute of Saveh, Saveh, Iran)

  • Davood Gorjizadeh

    (Naser Khosrow Institute of Higher Education of Saveh, Saveh, Iran)

Abstract

This research tries to investigate the comparability between the profit value relevance and book value of the listed firms in Tehran Stock Exchange. The research sample was selected by using the systematic removal sampling method by applying the research variable, 138 variables, during 2012-2019. Furthermore, this research has two hypotheses. This research is applied and the method is correlational based on nature and content. The research was conducted in the framework of deductive-inductive reasoning and panel analysis was used to analyze the hypotheses. The results of hypothesis testing showed that value relevance of profit and value relevance of book value increase with accounting comparability.

Suggested Citation

  • Sama Ojaghi & Majid Moradi & Davood Gorjizadeh, 2021. "The relationship of accounting comparability between the profit value relevance and book value," Technium Sustainability, Technium Science, vol. 1(1), pages 71-80.
    • Handle: RePEc:tec:sustai:v:1:y:2021:i:1:p:71-80
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    References listed on IDEAS

    as
    1. Gus De Franco & S.P. Kothari & Rodrigo S. Verdi, 2011. "The Benefits of Financial Statement Comparability," Journal of Accounting Research, Wiley Blackwell, vol. 49(4), pages 895-931, September.
    2. David S. Koo & Santhosh Ramalingegowda & Yong Yu, 2017. "The effect of financial reporting quality on corporate dividend policy," Review of Accounting Studies, Springer, vol. 22(2), pages 753-790, June.
    3. Ciao‐Wei Chen & Daniel W. Collins & Todd D. Kravet & Richard D. Mergenthaler, 2018. "Financial Statement Comparability and the Efficiency of Acquisition Decisions," Contemporary Accounting Research, John Wiley & Sons, vol. 35(1), pages 164-202, March.
    4. Jong‐Hag Choi & Sunhwa Choi & Linda A. Myers & David Ziebart, 2019. "Financial Statement Comparability and the Informativeness of Stock Prices About Future Earnings," Contemporary Accounting Research, John Wiley & Sons, vol. 36(1), pages 389-417, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    BUMDes; Financial Report; Web; SAK EMKM;
    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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