The Value Relevance of Financial and Non-Financial Information: Evidence from Recent Academic Literature
Value Relevance of Accounting Information in Capital Markets, https://doi.org/10.4018/978-1-5225-1900-3.ch015
29 Pages Posted: 25 Jan 2017 Last revised: 4 Jan 2021
Date Written: January 12, 2017
Value-relevance research is an important domain of modern capital market research. Accounting researchers have used the value-relevance research framework in many ways with the aim of measuring whether accounting information has a predicted association with equity market values. One of the most widely used models in value-relevance research is a modification of the Ohlson (1995) market valuation model in which the market value of a firm’s equity is presumed to be a function of its book value of equity and abnormal earnings. Furthermore, using the Ohlson (1995) model, accounting researchers have documented the value relevance of different types of financial and non-financial information. Drawing on a selected number of recently published studies that have documented the value relevance of different types of financial and non-financial information, this chapter reviews and integrates recent findings, highlighting challenges and providing future directions for further research in this area.
Keywords: Value Relevance, Ohlson Model, Capital Market, Financial Information, Non-financial Information.
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