Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
983090 | Procedia Economics and Finance | 2012 | 12 Pages |
Abstract
The objective of this study is to examine the value relevance of accounting earnings and book value of equity in explaining stock price. The study investigated whether bias in accounting influence earnings response coefficient and book value of equity coefficients. The study shows that accounting earnings and book value of equity are positively associated with stock price. Accounting earnings and book value of equity are useful to explain stock price changes. The results also shows that earnings response coefficient is smaller in the firms that have both conservative accounting or liberal accounting.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics