Value relevance of accounting earnings and cash flows in a transition economy: the case of Serbia

IF 3.2 Q1 BUSINESS, FINANCE
Milan Čupić, M. Todorović, Slađana Benković
{"title":"Value relevance of accounting earnings and cash flows in a transition economy: the case of Serbia","authors":"Milan Čupić, M. Todorović, Slađana Benković","doi":"10.1108/jaee-12-2021-0411","DOIUrl":null,"url":null,"abstract":"PurposeThe purpose of the study is to investigate the association of earnings and cash flows with stock prices and returns, and the impact of regulatory changes on the value relevance of accounting numbers.Design/methodology/approachThe authors examine a sample of non-financial firms listed on the Belgrade Stock Exchange from 2005 to 2018 and use three regression models – price, return and differenced.FindingsThe authors find evidence that accounting earnings are more value relevant than cash flows. The authors also find negative relation of earnings changes with stock returns and argue that this is due to the lower persistence of negative earnings levels and changes. Finally, the authors find that the value relevance of accounting information in Serbia increases after the improvements in capital market regulation.Research limitations/implicationsGiven the empirical focus on a transition economy, the widespread applicability of the study is limited. The findings, however, call for more research on transition economies to better understand the functioning of capital markets and the way information from financial statements is incorporated into stock prices.Practical implicationsThe results imply that policymakers in transition economies should improve the accounting and capital market regulation to provide better investor protection and to improve the capital market conditions.Originality/valueThe authors add to knowledge about the value relevance of accounting information in emerging and transition economies. The results could be of interest to standard setters in their efforts to better understand and improve the quality of accounting information in emerging and transition economies.","PeriodicalId":45702,"journal":{"name":"Journal of Accounting in Emerging Economies","volume":null,"pages":null},"PeriodicalIF":3.2000,"publicationDate":"2022-08-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"2","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Accounting in Emerging Economies","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1108/jaee-12-2021-0411","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 2

Abstract

PurposeThe purpose of the study is to investigate the association of earnings and cash flows with stock prices and returns, and the impact of regulatory changes on the value relevance of accounting numbers.Design/methodology/approachThe authors examine a sample of non-financial firms listed on the Belgrade Stock Exchange from 2005 to 2018 and use three regression models – price, return and differenced.FindingsThe authors find evidence that accounting earnings are more value relevant than cash flows. The authors also find negative relation of earnings changes with stock returns and argue that this is due to the lower persistence of negative earnings levels and changes. Finally, the authors find that the value relevance of accounting information in Serbia increases after the improvements in capital market regulation.Research limitations/implicationsGiven the empirical focus on a transition economy, the widespread applicability of the study is limited. The findings, however, call for more research on transition economies to better understand the functioning of capital markets and the way information from financial statements is incorporated into stock prices.Practical implicationsThe results imply that policymakers in transition economies should improve the accounting and capital market regulation to provide better investor protection and to improve the capital market conditions.Originality/valueThe authors add to knowledge about the value relevance of accounting information in emerging and transition economies. The results could be of interest to standard setters in their efforts to better understand and improve the quality of accounting information in emerging and transition economies.
转型经济中会计收益和现金流的价值相关性:塞尔维亚的案例
本研究的目的是探讨盈余和现金流量与股票价格和收益的关联,以及监管变化对会计数字价值相关性的影响。设计/方法/方法作者研究了2005年至2018年在贝尔格莱德证券交易所上市的非金融公司样本,并使用了三种回归模型——价格、回报和差异。研究结果作者发现,会计收益比现金流量更具有价值相关性。作者还发现收益变化与股票回报呈负相关,并认为这是由于负收益水平和变化的持久性较低。最后,作者发现塞尔维亚会计信息的价值相关性在资本市场监管改善后有所提高。研究局限/启示鉴于实证的重点是转型经济,该研究的广泛适用性是有限的。然而,调查结果要求对转型经济体进行更多的研究,以便更好地了解资本市场的运作以及财务报表信息纳入股票价格的方式。实践启示:研究结果表明,转型经济体的决策者应改善会计和资本市场监管,以提供更好的投资者保护,改善资本市场状况。原创性/价值作者增加了关于新兴和转型经济体中会计信息价值相关性的知识。这些结果可能对标准制定者更好地理解和提高新兴和转型经济体会计信息质量的努力有帮助。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
CiteScore
5.80
自引率
13.00%
发文量
38
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信