Valuation Effects Of Accounting Information Availability
In this paper, we extend comparative value relevance research by examining patterns in the value relevance of accounting numbers as a function of the month in which market values are observed. We stimate the residual income model on a sample of stock-exchange listed companies from Germany and France and find dramatically divergent patterns of fit. In France, accounting numbers have strong relevance for market valuation after publication of annual reports in February or March. In Germany, accounting numbers have stronger relevance during the fiscal year. We term the two effects forecast and coincident relevance, respectively. We argue that the divergence in patterns of fit may be a result of limited interim reporting in France before adoption of IFRS.
|Date of creation:||2010|
|Date of revision:|
|Publication status:||Published - Presented, Crises et nouvelles problématiques de la Valeur, 2010, Nice, France|
|Note:||View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00481073/en/|
|Contact details of provider:|| Web page: http://hal.archives-ouvertes.fr/|
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