Author
Abstract
Aims: This study aims to examine the value relevance of accounting information by analysing the extent to which earnings per share (EPS) and book value per share (BVPS) explain stock price variations of selected companies listed in the Nifty-50 index in India. Study Design: The study adopts an empirical research design using cross-sectional regression and pooled panel data analysis based on the Ohlson (1995) price valuation model. Place and Duration of Study: The study focuses on Nifty-50 indexed companies from 2016-2017 to 2024-2025, which corresponds to the post-adoption period of Indian Accounting Standards (Ind AS). Methodology: The sample consists of 24 non-financial companies selected from the Nifty-50 index after excluding financial sector firms and companies with missing data. A total of 216 firm-year observations were analysed. The study employs Ordinary Least Squares (OLS) regression to estimate three models in order to examine the individual and combined explanatory power of EPS and BVPS in determining stock prices. The explanatory power of the models is evaluated using adjusted R2 values. Results: The empirical findings reveal that both EPS and BVPS have a statistically significant relationship with stock prices. The results indicate that BVPS demonstrates relatively stronger and more consistent explanatory power across most of the years, while EPS exhibits a higher marginal impact on stock price when statistically significant. Furthermore, the combined regression model including both EPS and BVPS provides greater explanatory power compared to the individual models. Conclusion: The findings suggest that accounting information continues to play a meaningful role in stock price determination in the Indian capital market. This research contributes to the value relevance literature as it presents recent evidence from the Indian capital market, and provides some insights for investors, regulators and standard-setters regarding the continued importance of traditional accounting metrics in equity valuation processes.
Suggested Citation
Download full text from publisher
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below whether another version of this item is available online.
2. Check on the provider's
web page
whether it is in fact available.
3. Perform a
for a similarly titled item that would be
available.
Corrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-05575796. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
We have no bibliographic references for this item. You can help adding them by using this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .
Please note that corrections may take a couple of weeks to filter through
the various RePEc services.
Printed from https://ideas.repec.org/p/hal/journl/hal-05575796.html