The Impact of IFRS on the Value Relevance of Accounting Information: Evidence from Tunisian Firms

The capacity of information presented by financial statements to encapsulate and summarise corporate value is referred to as value relevance. By examining the statistical correlations between the data in financial statements and the values or returns on the stock market, value relevance may be evaluated. The book value of equity per share (which represents the balance sheet) and profits per share (which represents the income statement) are the two primary financial reporting variables that have been used in many research to examine correlations between the market value of equity and these two variables. This study examines the value relevance of accounting information for Tunisian listed companies between 2004 and 2022 before and after the implementation of International Financial Reporting Standards (IFRS). Using the Ohlson model (1995), market value is correlated with book value and earnings per share. In calculating market value or stock prices, overall book value is an important factor. The findings demonstrate that, when taking book values into account, value relevant of accounting information has increased in the post-IFRS period (2005– 2011), while gains in value relevance of earnings have not been seen.