Ind as convergence and its impact on value relevance of accounting variables

Title

Ind as convergence and its impact on value relevance of accounting variables

Creator

Meghala N.; Prakash M.

Description

This study investigates the correlation between accounting variables and stock prices in India from 2011 to 2022, emphasizing the impact of the Convergence of Ind AS with IFRS. Specifically, it explores how this convergence influences the value relevance of accounting data using the Ohlson Model. Beyond established vari-ables like Earnings per Share (EPS) and Book Value (BPS), the analysis introduces additional factors such as Dividend per Share (DPS) and Research and Development (R&D). Employing Ohlsons Pricing Model (1995), the research assesses the rela-tionship between these accounting variables and stock prices for 47 consistently listed firms in the NIFTY 500 index. Results show that DPS and R&D enhance the value relevance of the Ohlson Model, with the adjusted upper R squaredupper R squared increasing from 0.2 in 2011 to 0.6 in 2022. While overall value relevance improves after Ind AS convergence, BPS remains consistent when controlling for EPS. The Author(s).

Source

Studies in Systems, Decision and Control, Vol-525, pp. 199-210.

Date

2024-01-01

Publisher

Springer Science and Business Media Deutschland GmbH

Subject

accounting information; BPS; DPS; EPS; Ind AS; Ohlson model; R&D; value relevance

Coverage

Meghala N., Christ (Deemed to be University), Bangalore, India; Prakash M., Christ (Deemed to be University), Bangalore, India

Rights

Restricted Access

Relation

ISSN: 21984182

Format

Online

Language

English

Type

Book chapter

Identifier

https://doi.org/10.1007/978-3-031-54383-8_16

https://www.scopus.com/inward/record.uri?eid=2-s2.0-85200554608&doi=10.1007%2f978-3-031-54383-8_16&partnerID=40&md5=c349e133be810eb499a5b2a6127818e9