Owners’ equity and accounting information relevance

The paper examines the influence of equity ratio on the value relevance of earnings and book value for Jordanian industrial companies from 1992 to 2002.The findings show that equity ratio significantly influenced the value relevance of individual book value but not earnings.In their combination, the paper indicates that share prices respond more to book value than earnings.Our findings might increase the valuation practices understanding of financial statements users and provide fundamentals for future studies that aim to examine our hypotheses in more details

VALUE RELEVANCE OF ACCOUNTING INFORMATION: INSIGHTS FROM IRAQ

This research investigates the value relevance of accounting information, namely earnings and book value of equity (separately and aggregately), related to stock market values and stock market returns models, for Iraqi services companies for the four years 2015 - 2018. The paper finds that, related to stock market values model, the value relevance of earnings and book value has increased separately; the value relevance for earnings increased while it is irrelevant for book value when they are associated. In the other hand and related to stock market returns model, the value relevance of earnings either separately or aggregately has increased while that of book value has decreased. Generally, it is shown that earnings figures can   importantly demonstrate variances in stock market values and stock market returns compared with book value figures. Moreover, the findings show that earnings and book value separately are more value relevant in stock market values model. Differently, these variables aggregately are more value relevant in stock market returns model. The study finds earnings can widely help in demonstrating the changes stock market values in Iraqi services companies. The value relevance of accounting information using two models of stock market values and stock market returns has not examined before in one study in Iraq

Factors affecting employees’ salaries in Omani public sector

The study examines the effect of employees’ performance appraisal, gender, age and positionon salaries and extra amounts received by the employees during period of 2011–2017 based on the selectedsample from Ministry of Social Developments in Oman. To achieve the study’s objectives, the studyexamines the relationship among the mentioned variables using analyses of descriptive statistics, correlationanalysis and multiple regressions. The study finds that performance appraisal has positive and significanteffect on salary and extra. In presence of employees’ gender, age and position, this effect will be negativeand significant for employees’ salaries and negative and insignificant for extra amounts. As a starting pointfor future research, the study adds new empirical evidence to the research body on how to enhance theperformance of employees based on the annual appraisal with their salaries in the public sector

Impact of non accounting information on the value relevance of accounting information: The case of Jordan

The paper presents empirical evidence about the impact of firm’s shareholders number as non accounting information on the value relevance of its earnings and book value of equity as accounting information for Jordanian industrial firms for the period from 1993 to 2002.Employing the return regression analysis and using shareholders number in two proxies namely local and foreign shareholders number,the findings of the study are four fold.First, Individual earnings are value relevant while book value is irrelevant. Second, combining earnings with book value leads both of them to be irrelevant.Third, extending local shareholders number has significant impact on the value relevance of individual and combined earnings.Forth, extending foreign shareholders number has significant impact on the value relevance of individual book value and combined earnings. Since studies on the value relevance of these variables have neglected Jordan (and the Middle Eastern region), the study is the first especially in Jordan that tries to fill this gap by examining the impact of shareholders numbers on the value relevance of earnings and book value to indicate firm value

Company's Characteristics and Accounting Information Relevance

Abstract The paper examines whether company's characteristics, namely, stockholders number, listing status and company's age affect its accounting information relevance and which stock price measure, among average price, closing price and after three months price, is more dependable in pointing out the accounting information value relevance for a sample consists of 91 companies in the services and industrial sectors in Jordan within 2004-2013. Using price model, it is found that companies with larger stockholder numbers, listed on Amman Stock Exchange primary market, and that are older in age yield greater value relevance for per share earnings and book value. Book value has the greatest value relevance being the best predictor for firm value, while cash flows showed insignificant results. Finally, we concluded that closing price is the most dependable among the three stock price measures in detecting the accounting information value relevance in Jordan. The paper presents the ability of valuation theory/model to interact with other theories by including the effect of non-accounting information on the accounting information value relevance. Our findings might present evidence that can serve the educational institutions in their courses and provide a guideline to investors, managers and financial analysts to better summarize the firm value

A Suggested Mechanism to Measure External Audit Quality and Failure

This study reviews measures of external audit quality and failure cases through discussing many studies which present them as cases, definitions, and failure reasons. The differences between both cases of audit, as procedures, are theoretically tested by a set of requirements in a suggested designed mechanism titled Audit Quality and Failure Measurement Mechanism (AQFMM) that based on 10 assumptions and includes 5 stages to measure audit. The conclusions of the study point out that the best way to measure audit is by separating between both cases of audit quality and failure and finding their differences and boundaries by the suggested mechanism

Does financial disclosure influence the value relevance of accounting information?

Purpose– The paper aims to examine the influence of financial disclosure (FD) level and time on the value relevance of earnings, book value, and cash flows relative to three share price proxies, namely average annual share price, annual closing share price, and share price after a three-month period following the financial year-end for Jordanian companies.Design/methodology/approach – The paper employs price model to examine the influence of FD level and time on the value relevance of three accounting variables relative to three share price proxies for 91 Jordanian companies (consisting of 5,460 observations) within 2004-2009.Findings– Relative to three share price proxies, the findings proved that FD level and time have a significant influence on the value relevance of book value, but not for cash flows. Also, FD level and time have a significant influence on the value relevance of earnings relative to annual closing share price, while they are not relative to share price after a three-month period following the financial year-end.FD time has a significant influence on the value relevance of earnings relative to the average annual share price.Annual closing share price is the most reliable in indicating value relevance of accounting information.Originality/value – The paper confirms that there is a shift away from earnings towards book value as the basis for firm valuation.Market participants might be able to conclude the firm value through the value relevance of accounting information influenced by company's FD