WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 21, 2024
Incremental Content of Accounting Information when Local Options of IFRS are Applied: Empirical Evidence from an Emerging Economy
Authors: ,
Abstract: This study aims to assess the incremental useful information provided by accounting data when Thai listed companies were temporarily exempted from certain TFRS standards due to the COVID-19 pandemic. The analysis covers 2,504 observations of the companies listed on the Stock Exchange Thailand from 2018 to 2021, spanning two years before and after the pandemic. The study uses market-based performance including Tobin’s Q, book value per share, market value per share, and price per book as proxies to gauge the information value. Descriptive statistics and multiple regression are used to analyze the data, and the study employs IQR and Boxcox techniques to validate the data. The overall results suggest that accounting information provides incremental value on market-based performance both pre and post-the-temporary exemption from TFRS. Earnings per share emerged as the most significant factor influencing market-based performance, followed by cash flows of investing activities, both before and after the relief. Market value per share was perceived by investors as the most crucial measure of incremental information from accounting data, followed by book value per share. Companies that paid dividends showed a significant relationship with all firm values post the relief period. Finally, fair value accounting is one of the vital topics being scrutinized when there are signs of economic turmoil. These findings are particularly beneficial for stock markets in emerging economies.
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Pages: 1821-1844
DOI: 10.37394/23207.2024.21.149