The Impact of operating income measurement on the value Relevance of accounting information Applying to a sample of banks listed in the Iraq Stock Exchange
Article Sidebar
THIS IS AN OPEN ACCESS ARTICLE UNDER THE CC BY LICENSE
Main Article Content
Abstract
The current research aims to present and analyze the two concepts of income and the value relevance of accounting information and the models used in measuring it. As well as presenting and analyzing the effect of measuring operating income on the value relevance of accounting information, on a sample of banks listed on the Iraq Stock Exchange for the period (2016-2019). To many conclusions, the most important of which is that the value of (R2) indicates the existence of an acceptable level the value relevance of accounting information according to the price model, which indicates that earnings per share, book value per share, and cash flows per share explain (43.5%) of the changes in prices shares. While the value (R2) decreased according to the return model compared to the price model, reaching (0.180). Which indicates that (earnings per share/share price, change in profitability/share price) explains about (18%) of the changes It occurs in its share returns. And the operating income had a role in increasing the explanatory power of the determination factor according to the price and return models. The explanatory power for them reached (45.3%) and (0.270) respectively. The study also made several recommendations, the most important of which is that to apply International Financial Reporting Standards in the banking sector, there is an international role in increasing the relevance of the accounting information value compared to what it was according to the local standards that were measured in previous studies on the same sector (the banking sector). And light of this, the Securities Commission, the Local Standards Committee and the relevant regulatory authorities should intensify efforts to transform Towards international standards for the rest of the sectors operating in the local environment and the accompanying establishment of courses and workshops to raise the efficiency of account preparers in preparing the financial information by international standards.
Downloads
Article Details
References
أولاً. المصادر العربية:
شاهين، علي عبدالله، (2011)، النظرية المحاسبية، إطار فكري تحليلي وتطبيقي، الطبعة الأولى، مكتبة افاق، غزة، فلسطين.
الحميد، عبد الرحمن بن إبراهيم، (2009)، نظرية المحاسبة، ط1، جمعية انسان، الرياض، المملكة العربية السعودية.
شرويدر، ريتشارد. كلارك، مارتل، كارثي، جاك، (2016)، نظرية المحاسبة، تعريب، كأجيجي، خالد علي احمد، وفأل، إبراهيم ولد محمد دار المريخ للنشر، الرياض، المملكة العربية السعودية.
كيسو، دونالد، ويجانت، جيري، (1999)، المحاسبة المتوسطة، الجزء الأول، تعريب احمد حامد الحجاج، دار المريخ للنشر، الرياض.
الشيرازي، عباس مهدي، (1990)، النظرية المحاسبية، ذات السلاسل للطباعة والنشر، الكويت.
الحيالي، وليد ناجي، (2007)، نظرية المحاسبة، منشورات الأكاديمية العربية المفتوحة في الدنمارك.
البلقاوي، احمد، (2009)، نظرية محاسبية، تعريب رياض العبد الله، دار اليازوري العلمية للطباعة والنشر، الطبعة العربية، عمان، الاردن.
السفان، ميثم بدر بعيوي، (2016)، تأثير ملاءمة قيمة المعلومات المحاسبية في أسعار أسهم الشركات المدرجة في سوق العراق للأوراق المالية، رسالة ماجستير، كلية الإدارة والاقتصاد، جامعة بغداد.
أبو نصار، محمد، حميدات، جمعة، (2016)، معايير المحاسبة والإبلاغ المالي الدولية - الجوانب النظرية والعملية -، الطبعة الثالثة، عمان، الأردن.
الهيئة السعودية للمحاسبين القانونيين، (2018)، المعايير الدولية للتقرير المالي المعتمدة في المملكة العربية السعودية والمعايير والإصدارات الاخرى المعتمدة من الهيئة السعودية للمحاسبين القانونيين، السعودية/الهيئة السعودية للمحاسبين القانونيين، الرياض.
شنشول، محمد حيدر محمد، (2019)، قياس تأثير القدرة الإدارية في ملاءمة قيمة المعلومات المحاسبية، رسالة ماجستير، كلية الإدارة والاقتصاد، جامعة بغداد.
ثانياً. المصادر الأجنبية:
Aboody, D, & Hughes, J. & Liu, J. Measuring Value Relevance in a (Possibly) Inefficient Market. Journal of Accounting Research, Vol40, No4, Sep 2002.
Ahmed, I, E., (2020), the Qualitative Characteristics of Accounting Information, Earnings Quality, and Islamic Banking Performance: Evidence from the Gulf Banking Sector. International Journal of Financial Studies, 8(2), 30.
Ayuntari, Chivalrind Ghanevi, (2016), A Comparison of the value relevance accounting information from implementation of XBRL (Case study in Korea), Proceeding of the 3rd International Conference on Management & Muamalah 2016 (3rd ICoMM) 31st October - 1st November 2016.
Barth, M. E., Landsman, W. R., Lang, M., & Williams, C., (2009), Are International Accounting Standards-based and US GAAP-based accounting amounts comparable. W orking paper Stanford University Graduate School of Business.
Bataineh, A., & Rababah, A., (2016), Comprehensive Income and Net Income, which is more powerful in predicting Future Performance. International Journal of Academic Research in Accounting, Finance and Management Sciences, 6(2), 114-120.
Beaver, W. H., (1968), the information content of annual earnings announcements. Journal of accounting research, 67-92.
Bhatia, M., & Mulenga, M. J., (2019), Value Relevance of Accounting Information: A Review of Empirical Evidence across Continents. Jindal Journal of Business Research, 8(2), 179-193.
Comandaru, A. M., Paschia, L., Stanescu, S. G., & Coman, M. D. Accounting Information-Notice of an Efficient Decision System, Hyperion Economic Journal, 3.
Daas, G., & Jammal, T., (2018), Value Relevance of IFRS13 Fair Value Hierarchy Information in Palestinan Financial institutions.
Enofe, A. O., Asiriuwa, O., & Ashafoke, T. O., (2014), Value relevance of accounting information in the banking subsector of the Nigeria stock exchange (NSE). British Journal of Accounting, Auditing and Finance Research, 1(1), 42-55.
Eriksson, N., & Rådström, N., (2019), the implications of IFRS 9-for Equity Analysts.
Farnaciari, Luca. & Azzali, Stefano. & Mazza, Tatiana., the Value Relevance of Earning Management in Manufacturing Industries Before and During the FInancial Crisis, (2012:1-31).
Financial Accounting Standards Board (US). (1980). Qualitative Characteristics of Accounting Information: Statement of Financial Accounting Concepts No. 2, May 1980. FASB.
Francis, J., & Schipper, K., (1999), Have financial statements lost their relevance?. Journal of accounting Research, 37(2), 319-352.
Giosi, Alessandro & Testarmata, Silvia & Buscema, Ignazio, the Value Relevance of Financial Information in Troubled Waters. the Evidence of Italian Context. ,2013,PP 1-13.
Glautier, M., & Underdo, B., (2011), n & D. Morris. Accounting–Theory and Practice”.
Hasan, I., & Anandarajan, A., (2003), Transparency and value relevance: the experience of some MENA countries. Preliminary Version.
International Accounting Standards board, IAS1)2009), Presentation of Financial Statements.
International Accounting Standards board, IAS36, (2013), Impairment of Assets
International Accounting Standards board, IAS8 (2003), Accounting Policies, Changes in Accounting Estimates and Errors
Kabir, M. H., & Laswad, F., (2011), Properties of net income and total comprehensive income: New Zealand evidence. Accounting Research Journal.
Kam, V., (1990), Accounting theory (second edition). New York: Wiley.
Kargın, S., (2013), the impact of IFRS on the value relevance of accounting information: Evidence from Turkish firms. International Journal of Economics and Finance, 5(4), 71-80.
Khanagha, J. B., (2011), Value relevance of accounting information in the United Arab Emirates. International Journal of Economics and Financial Issues, 1(2), 33.
Kieso, D, E, Weygandt, J, J, Warfield, T, Intermediate Accounting" 17th Edition, Wiley, (2019).
Kieso, D, E, Weygandt, J, J, Warfield, T, Intermediate Accounting" 16th Edition, Wiley, (2016).
Kieso, D, E, Weygandt, J, J, Warfield, T, Intermediate Accounting" second Edition, Wiley, (2014).
Mbobo, M. E., & Ekpo, N. B., (2016), Operationalising the qualitative characteristics of financial reporting. International Journal of Finance and Accounting, 5(4), 184-192.
Ota, K., (2001), the impact of valuation models on value-relevance studies in accounting: A review of theory and evidence. Available at SSRN 280873.
Pervan, IVICA and Bartulović, Marijana, Determinants of value relevance of accounting information: comparative analysis for listed companies from South East Europe, University of Split, Faculty of Economics, University of Split, Center for professional studies, 2008, PP 146-157.
Riahi-Belkaoui, A., (2000), Accounting Theory (5 uppl.). London: Thomson Learning.
Schroeder, R, G. Clark, M, W. Cathey, J, M., (2014), Financial Accounting Theory and Analysis Text and Cases” Eleventh Edition Eleventh Edition. New York: Wiley.
Spiceland, J, D. Sepe, J, F. Mark, W.N., (2013), INTERMEDIATE ACCOUNTING” McGraw-Hill, Americas, New York
Stice, J, D. Stice, E, K. Skousen, K, F., (2007), Intermediate Accounting 16e. Thomson South-Western
The International Financial Reporting Standards Foundation, (2013), IFRS13, Fair Value Measurement
Turktas, B., Georgakopoulos, G., Sotiropoulos, I., & Vasileiou, K. Z., (2013), Reporting comprehensive income: Reasons for reporting choices and investor reactions. International Journal of Economics and Finance, 5(4), 1-20.