Incremental Content of Accounting Information when Local Options of

IFRS are Applied: Empirical Evidence from an Emerging Economy

WACHIRA BOONYANET1, WAEWDAO PROMSEN2

1Chulalongkorn Business School,

Chulalongkorn University,

Pathumwan, Bangkok, 10330,

THAILAND

2Faculty of Business Administration and Liberal Arts,

Rajamangala University of Technology Lanna Chiang Rai,

Phan, Chiang Rai, 57120,

THAILAND

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.

Key-Words: - accounting standards, value relevance, EPS, cash flow, COVID-19, SET, Thailand.

1 Introduction

The recent COVID-19 pandemic is considered one of

the world’s most serious economic downturns in

history. The pandemic hugely affected businesses'

financial performance and prospects for surviving

well into the future. Government lockdowns and

widespread shutdowns of economic activities led to

massive changes in financial reporting and the

accuracy of financial records still had to be accurate.

A local accounting standard board often issued

guidance on how to address COVID-19-related

issues in financial statements, including disclosure

requirements related to risks, uncertainties, and the

impact on financial position and operational results.

Like other central banks, the Bank of Thailand

(BOT) announced the measures designed to cope

with specific problems arising during the

development phases of the pandemic in Thailand.

The measures included loan payment holidays and

reducing the contribution rate to the Financial

Institutions Development Fund (FIDF) which

supported financial institutions to help debtors and

maintain sufficient liquidity for retail debtors. These

helped to maintain the stability of the Thai finance

industry. Also, the BOT with the cooperation of the

Thailand Federation of Accounting Professions

(TFAC) supported commercial activities by allowing

commercial banks to set aside possible loan losses

for their clients who faced financial difficulties, [1],

[ 2] , [ 3] . As a result, the banks’ operations results

Received: January 19, 2024. Revised: July 9, 2024. Accepted: August 4, 2024. Published: September 6, 2024.

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were not severely affected by the COVID-19

pandemic. Like other countries, TFAC announced

“Thailand’s COVID-19 relief measures for

accounting treatments. The measures impacted on

listed companies’ financial statements, mainly

postponing the consideration of the impairment of

assets, especially property, plant and equipment, and

investments for two years (2020-2021), [ 2] . These

two temporary relief measures introduce an

opportunity to research an important issue during the

COVID-19 pandemic; the measures of the BOT and

TFAC result in local options for accounting practices

in Thailand. These relief measures or local options in

applying IFRS lead to the question of whether

accounting information still provides informative

value.

In addition, previous studies have been carried

out on the issue of global standardization accounting

principles. On the one hand, the international

financial market prefers a global cooperative

approach. Alternatively, domestic accounting

standard setters call for local options in applying

IFRS, [4] . However, empirical research in this area

is limited to emerging economies. Furthermore, as

Thailand had already experienced a regional financial

crisis in 1997-98, severe financial difficulty took

some time to restore the Thai economy. One of the

IMF’s requirements was to improve the country’s

accounting standards, especially asset impairment.

This is because asset impairment played a crucial

role in reflecting the true financial condition of banks

and financial institutions, which were significantly

impacted by non-performing loans and deteriorating

asset quality. The IMF, along with other international

financial institutions, emphasized the importance of

accurately assessing and provisioning for impaired

assets to restore confidence in the finance system.

However, after implementing the asset impairment

rules, the Thai economy was still in danger. This is

mainly because the banking sector was weak.

Impaired assets, particularly non-performing loans

(NPLs), weaken the balance sheets of banks and

financial institutions. Consequently, listed companies

and commercial banks devalued their assets

significantly. Later, those assets were purchased back

at unreasonable prices by special vehicle entities. The

question is whether asset devaluation is the proper

way to solve economic turmoil, or if this aggravates

the economy. This also leads to the question that

when countries are experiencing economic turmoil,

local accounting standard setters should consider

local options in applying IFRS or if the full adoption

of IFRS is still required.

One of the IMF’s requirements was to improve

the country’s accounting standards, especially asset

impairment. This is because asset impairment played

a crucial role in reflecting the true financial condition

of banks and financial institutions, which were

significantly impacted by non-performing loans and

deteriorating asset quality. The IMF, along with other

international financial institutions, emphasized the

importance of accurately assessing and provisioning

for impaired assets to restore confidence in the

finance system. However, after implementing the

asset impairment rules, the Thai economy was still in

danger. This is mainly because the banking sector

was weak. Impaired assets, particularly non-

performing loans (NPLs), weaken the balance sheets

of banks and financial institutions. Consequently,

listed companies and commercial banks devalued

their assets significantly. Later, those assets were

purchased back at unreasonable prices by special

vehicle entities. The question is whether asset

devaluation is the proper way to solve economic

turmoil, or if this aggravates the economy. This also

leads to the question that when countries are

experiencing economic turmoil, local accounting

standard setters should consider local options in

applying IFRS or if the full adoption of IFRS is still

required. The study employs Thai-listed companies

as an indicator of what happens in a developing

economy. All of these listed companies had applied

temporary relief measures or local options in

applying IFRS during the COVID-19 pandemic as

announced by [ 2] . The dataset is divided into two

periods: before (2018-2019) and after (2020-2021)

the relief measures were introduced. The study finds

significant contributions. Firstly, the earnings per

share significantly relate to all four firm values

positively both before and after the temporary relief

for additional accounting options. Secondly, the

empirical results point out that during economic

turmoil, the listed companies are more likely to

pay dividends. Thirdly, the D/E ratio negatively

relates to Tobin’s Q both before and after the

temporary relief for additional accounting options.

Fourthly and lastly, the analysis points out that

financing cash flows is less likely to reflect firm

value both before and after the temporary relief for

additional accounting options.

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The remaining part of this study is divided into

the following sections. In Section 2, a review and

explanation of the significant terms is explained. In

Section 3, accounting regulations and practices in

Thailand are described as the background to the

analysis, followed by Section 4 which describes the

temporary relief of TFRS during the pandemic.

Sections 5 and 6 briefly explain the independent

variables and dependent variables, respectively.

Section 7 explains the research methodology

employed in this study. The descriptive statistics,

correlation analysis, and regression results are noted

in Section 8. Section 9 provides discussions and

implications. Finally, the conclusions are delivered in

Section 10.

2 Research Paradigm and Literature

Review

2.1 Economic Value of Accounting

Information

To recognize why accounting information furnished

incremental value to society, accounting history

should be stated here. [5], [6], stated that as far as the

11th century AD, early accounting information was

mainly about charge and discharge functions.

Accounting information was considered as paying

dividend-related information. Later, accounting data

was adjusted to an accrual basis and became an

income measurement function, [7], [8] . By the 12th

century, a fundamental period of accounting was

marked by the increasing standardization of financial

activities, which made it possible to offer a more

widely accepted accounting framework, [9], [10],

[11], [12], [13]. Later, the accounting framework was

changed continuously, [14], [15] .

Later, the question arose as to what measures

should be employed to value accounting information.

[16], stated that the term “information economics”

should be used for this purpose. This was because

accounting information was a communication

approach to state what had already happened, but it

can be used to forecast expected future financial

events. Accounting information was modeled under

the idea of resource allocation and as economic

information that focuses on an analysis of resource

allocation rather than a prescription. The economic

function contributed to decision-making, and the

information would also motivate which actions to

choose. [17], conducted further investigation into

accounting information was useful in information

economics. They endeavored to examine the

relationship between accounting earnings, stock price

fluctuations, and trading volume before and at the

time of accounting earnings release. Their study

discovered that share prices changed significantly

and statistically at the time of the accounting

earnings release. This means that accounting

information offered clues as to what decisions had to

be made, [17]. In the late 20th century, the

development of accounting information was mainly

considered information economics because

accounting information is not only for decision-

making but also for practical strategies for future

organizational business requirements. Figure 1

summarizes the historical development of accounting

information.

Fig. 1: Functions of accounting data, [18]

Previous research has been conducted to observe

the value relevance of accounting information. It

assesses whether financial reporting, including items

on the financial position (balance sheet) and income

statement, provides useful information to investors in

making decisions about buying, holding, or selling a

company's shares. Researchers have extensively

examined value relevance to understand how

accounting data impacts investors' perceptions and,

consequently, stock prices. Early studies on value

relevance were primarily driven by observing the

correlation between accounting earnings and stock

prices. [19], investigated this relationship revealing a

substantial positive association between earnings and

stock price establishing the foundation for further

research in this area. Later, numerous studies

continued to explore the correlation between

accounting earnings and stock prices in various

scenarios. Research has generally found there is a

positive association suggesting that earnings have

value relevance. Later, other accounting information

such as the book value of equity became another

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critical component of accounting information.

Researchers have expanded their focus beyond

traditional financial data to explore the value

relevance of accounting information in events and

situations such as sustainability and financial distress.

Numerous scholars have conducted studies on

the value relevance of accounting information and its

relationship with firm value and firm performance.

[20], summarize that the studies of value relevance of

accounting information literature are classified as: (i)

informative value of earnings and book values, (ii)

other accounting information informative value, and

(iii) informative value of accounting information in

situations such as financial distress or trying to

achieve sustainability. Notable studies include [ 21]

who stated that accounting accruals motivated the

increase in short-term performance. The greater the

working capital and financing activity investment,

the longer operation cycles lasted. [22] , found that

dividends reduced current book value but did not

impact present earnings. [ 23] , explores the value

relevance of financial reporting in the venture capital

investment context. The study found that financial

reporting had high informative value in venture

capital markets and indicated the association signals

between equity values and financial statement data.

[ 24] , examined the role of accounting information

that triggered the 2008 United States financial crisis

that then became a global one. They found that

accounting information may not be an indicator of

financial crisis. The disaster was due to the wrong

incentives regarding compensations and fair value

accounting standards.

[ 25] , revealed that earnings and book value of

equity had a positive and significant relationship with

stock price. Earnings explained the higher deviation

in stock values compared to the book value of equity.

[ 26] , found that the book value of equity has the

highest impact on increasing firm value, including

accounting earnings and operating income. In

addition, operating cash flow hurt corporate value.

[ 27] , investigated the relationship between

accounting information and market valuation data of

publicly listed nonfinancial firms in Asia for the

years 2000 to 2016. The study found inconsistencies

in the accounting informative value of Asian firms

during the global financial crisis (GFC). [ 28] ,

discovered that accounting earnings provided more

informative value than cash flows. The study also

found earnings changes negatively related to stock

returns. [ 29] , employed multiple proxies of

accounting information. The study reported that

accounting information positively impacted the

market value per share. In addition, the study

documented that book value provides the most value

relevance of all the other accounting data including

earnings, dividends, and operating cash flows. [30],

observed COVID-19 pandemic effects on the quality

of financial statements. The results demonstrated that

the quality of financial statements differed from those

in the pre-pandemic period. Lower earnings

conservatism was evident during the pandemic

period compared to the pre-pandemic period,

resulting in a reduction in the informative value of

the book value of equity.

In summary, the existing literature on accounting

value relevance is extensive and continually

evolving. It reflects the ongoing efforts of researchers

to understand how accounting information impacts

financial markets and investors’ decision-making.

While there is a general consensus that accounting

data, particularly earnings and book value, provides

value-relevant, ongoing changes in the business

environment and advances in research methods

continue to shape this field. Researchers are also

exploring new areas.

2.2 Accounting Regulations and Practices in

Thailand

It is mandatory for Thai limited companies, both

public and private, to prepare financial statements.

The Thai accounting standards are classified into two

versions: Publicly Accountable Entities (PAEs) and

Non-Publicly Accountable Entities (NPAEs). Under

the Accounting Professions Act B.E. 2547 (2004),

listed companies are required to prepare financial

reports using PAEs, the so-called Thai Financial

Reporting Standards (TFRS), while SMEs (small and

medium-sized businesses) can select either PAE or

NPAE. Listed companies are required to be public

companies and must use PAE, and their financial

reports are required to be audited by a certified public

auditor, approved by the Securities and Exchange

Commission (SEC). Meanwhile, SMEs can be

audited by either a general certified public auditor or

an approved certified public auditor.

TFAC has the authority to develop and issue

Thai accounting standards with the approval of the

Accounting Professions Regulatory Commission,

Ministry of Commerce. The standards are published

in the Royal Gazette. TFRS are International

Financial Reporting Standards (IFRS) translated into

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Thai with a one-year delay from the equivalent IFRS

Standard’s effective date, [ 31] . In addition, the

regulators who are monitoring the accounting

practices in Thailand include the SEC, BOT, and the

Office of Insurance Commission (OIC). They are

also the agencies that regulate the Thai capital

market.

2.3 Temporary Relief of TFRS during the

COVID-19 Pandemic

TFAC with the approval of the Accounting

Professions Regulatory Commission on 1 6 April

2 0 2 0 announced the regulations titled “Temporary

relief for additional accounting options in supporting

the outcomes affected by the outbreak situation of

COVID-19 pandemic”, [2]. This set out to reduce the

impact of compliance-related matters with Financial

Reporting Standards No. 9, Financial Instruments,

Financial Reporting Standards No. 13, Fair Value

Measurement, Financial Reporting Standards No. 16,

Leases, Financial Reporting Standards No. 12,

Income Taxes, Financial Reporting Standards No. 36,

Impairment of Assets, Financial Reporting Standard

No. 37, Provisions for Contingent Liabilities and

Contingent assets and accounting practices regarding

financial instruments and disclosure of information

for insurance business. The most important points are

as follows:

1. If an entity chooses to use a simpler method

to measure expected credit losses, it can

choose not to use forward-looking

information. An entity can use historical

credit loss data or other methods that provide

similar results, along with management's

judgment in estimating expected losses from

available and freely available information

that costs much and much effort in setting up

reserves.

2. Entities can choose to measure non-

marketable equity investments at fair value

as of January 1 , 2 0 2 0 (the first year of the

COVID-19 pandemic).

3. For specific financial assets that are debt

instruments according to the definition of

debt instruments specified in Accounting

Standard No. 32, Financial Instruments.

During the COVID-19 situation, in

measuring fair value information, businesses

can consider giving low priority to

information during the COVID-19 pandemic

about the fair value technique.

4. For fair value measurement of non-financial

assets such as PPE and property investments,

businesses can choose not to use information

related to the COVID-19 pandemic that may

distress future financial predictions for use in

related fair value measurement techniques.

5. Businesses can choose not to use information

related to the COVID-19 pandemic that may

impact the estimation of future tax profits

that will occur.

6. Businesses can choose not to count the

COVID-19 pandemic as a cause of asset

impairment by Accounting Standard No. 36,

Impairment of Assets.

7. In testing for goodwill impairment of

intangible assets with an indefinite useful life

or intangible assets that are not yet available

for use on an annual basis which the business

may operate at any time of the year,

businesses can choose not to use information

from the COVID-19 pandemic that may

affect future financial predictions.

In addition to the above temporary relief

measures, businesses can choose not to consider the

COVID-19 pandemic as causing their current

problems. Companies are required to disclose

information about the exercise of such alternatives,

giving the facts and circumstances in which the entity

complies with this accounting guidance in the notes

to reporting of relevant financial standards. This

accounting guideline is a temporary relief measure

for additional accounting options in financial

reporting preparations affected by the COVID-19

pandemic with reporting periods ending in the period

between January 1, 2020, and 31 December 2 0 2 0

with the extension lasting till 31 December 2021.

2.4 Dependent Variables: Firm Value

This study intends to explore the informative value of

various firm value measurements. These include

Tobin’s Q, book value per share, market value per

share, and price to book value. Brief explanations of

the independent variables are as follows:

Tobin’s Q provides the firm value of common

shares to the replacement cost associated with assets.

The Q ratio has extensive macroeconomic

significance and usefulness in financial markets,

[32].

Book value per share represents shareholders’

equity value over the number of outstanding common

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shares. The book value per share provides

information on the book value of the firm, [33].

Market value per share is determined by the

collective actions and perceptions of investors and

traders in the stock market. It represents the current

stock price of a common share, [34], [35].

Price to book value is a market price per share

divided by its book value per share. This serves to

evaluate the correlation between the market value

and its accounting value, [36], [37].

2.5 Independent Variables

This section explains why this study employs these

independent variables and previous studies have been

using them to investigate the informative value of

these variables on firm value. The study used well-

known financial ratios to represent companies’

financial positions and operating results, [38], [39],

[40] . The independent variables are as follows: cash

dividend paid, current assets to current liabilities,

debt to equity ratio, retained earnings to total assets,

earnings per share, cash flow from operation to total

assets, cash flow from investing activities to total

assets, and cash flow from financing activities to total

assets. Each dependent variable is explained in more

detail below:

A cash dividend paid (CDP) is a cash payment

made by a company out of its earnings to investors

instead of the company using the money for

operations. Companies that consistently pay

dividends may attract a broader range of investors.

Investors prefer to invest in dividend-paying stocks

because they offer a predictable income stream in

addition to the potential for capital appreciation.

Also, paying cash dividends can offer a hint to

investors that a company is healthy enough to

generate profits distributed to shareholders.

Previous studies have researched incremental

value of dividend payout on firm value and

continuously introduced new theories, and models

that resulted in updated empirical studies. It is

important to consult the latest academic literature to

gain a comprehensive understanding of the subject.

[ 41] , found that a dividend payment had a positive

and significant relationship with firm value. [ 42] ,

found that dividend payout, profitability, and

corporate sizes positively and significantly

influenced corporate value but leverage hurt

corporate value. [ 43] , found dividend payment

negatively affected firm value measured by

accounting-based performance. Firms offering small

dividends positively impacted accounting-based

performance but exerted a negative influence on

market expectations. [ 44] , found continuous cash

dividends positively influenced firm value. As well,

enterprise value increased when companies paid

continuous cash dividends rather than companies that

discontinued paying dividends. [ 45] , found that

dividend policy is positively and significantly

associated with firm value. In addition, the

association strengthened following IFRS adoption,

indicating that accounting information prepared

under IFRS increased value relevance. [ 46] , found

that the COVID-19 crisis caused financial difficulty

and resulted in very poor or no dividend payments.

Liquidity ratios (current ratio and quick ratio)

measure a company’s ability to meet its current

assets with its liabilities. The ratio shows immediate

financial needs without disrupting its operations or

facing financial distress. The association between

liquidity ratios and firm value can be understood in

several key points. Numerous scholarly studies have

investigated the association between liquidity ratios

and firm value. These studies have utilized various

methodologies and data from different industries and

geographical regions. For example, [ 47], found that

the acid test ratio and current ratio significantly

affected firm value. In addition, the current ratio had

a positive relationship with firm value, while the acid

test ratio had a negative relationship with firm value.

[48], noted that liquidity was insignificantly related

to firm value. As well, the dividend policy did not

significantly moderate the effect of liquidity.

[ 49] , found that liquidity had a significant and

negative relationship with ROE. [50], found liquidity

affected the capital structure, but not firm value.

However, when mediated by capital structure,

liquidity is significantly related to firm value. [ 51] ,

found that profitability and firm size significantly

influenced capital structure, while the latter mediated

the effect of firm size on firm value. However,

liquidity did not play a mediating role for any

financial indicators on firm value. [52], reported that

liquidity significantly and negatively affected firm

value, while profitability significantly and positively

affected firm value. Furthermore, the dividend policy

does not mediate the relationship between liquidity

and firm value. According to [ 53] , both illiquidity

factors significantly and negatively affected firm

performance. [54], found that liquidity enhanced and

strengthened sustainability expenses. Furthermore,

greater leverage with less liquidity negatively

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affected the level of spending on sustainability. [55],

stated that liquidity hurt capital structure, and it

cannot mediate the association between liquidity and

firm value.

Retained earnings to total assets (RETA) can

be a symbol of financial sustainability and strength

because it indicates that companies have accumulated

profits over time, and they have not overly diluted

their equity with dividends or engaged in excessive

expenditure The ratio can also help assess financial

leverage. If the ratio is high, it may indicate

companies have relied on internally generated funds

(retained earnings) to finance a significant portion of

their assets, rather than taking on additional debt or

issuing more equity. A lower ratio, on the other hand,

may suggest that companies have dispersed a

significant portion of their profits as dividends or

have invested heavily in assets to support growth.

This could indicate a poorer capacity for financial

flexibility.

The correlation between retained earnings to total

assets and firm value has been the subject of

extensive research in finance and economics.

Numerous scholars have conducted studies exploring

this relationship from various perspectives. The

following are a few notable contributions to this

field. [56], found an insignificant association among

retained earnings, cash dividend per share, and

capital gain yield. [57], found that retained earnings,

dividend payout, and net total assets per share had a

positive and significant influence on stock prices.

Furthermore, dividend payout revealed a strong

association with stock price when compared to

retained earnings. Retained earnings, dividend

payout, and net total assets per share are positively

and significantly related to firm value. [ 58], found

retained earnings, earnings per share and dividend

pay-out are positively and significantly associated

with firm value. [59], believed that retained earnings

per share indicated a negative significant effect on

the market value of common stocks. [60], found that

corporate governance index, retained earnings per

share, and earnings per share positively and

significantly related to the market to book value.

Equity debt (D/E) helps assess the financial

risks of companies. A high D/E ratio shows that

sources of funds come from debt. Investors and

creditors use it to gauge the possibility of financial

distress or defaulting on its debt obligations.

Companies can use the ratio to evaluate and optimize

their capital structure. Modifying the D/E ratio offers

a company the potential to reduce its capital costs,

thereby enhancing its profitability. Striking a balance

between debt and equity can also assist a company in

establishing a stable financial framework conducive

to its expansion and ongoing activities. Lenders and

bondholders utilize the D/E to evaluate

creditworthiness when contemplating loans or

investments in corporate bonds.

Extensive research has examined the connection

between the D/E ratio and firm value. Scholars have

conducted numerous studies investigating this

relationship from different angles. For instance, [61],

identified a noteworthy correlation between leverage,

liquidity, size (total assets), and firm value. [ 62] ,

found a U-shaped correlation between debt and

Tobin’s Q mediated by the per capita income of the

country. [ 63] , discovered that capital-related

decisions are negatively associated with corporate

performance. [ 64] , found that a higher D/E ratio

produced a higher net present value for firms. [ 65],

noted that capital structure affected the

competitiveness of enterprises in a reverse U-shape.

At the same time, the debt ratio affected the

competitiveness of enterprises in the form of a U-

shaped and reverse U-shaped function in various

industries. [66], found borrowings in both the long-

term and short-term had significant and negative

impacts on market value. Further, the study found

that firm size significantly moderated the correlation

between debt financing and firm value.

[ 67] , documented that the best possible capital

structure selection reflected an appropriate proportion

of debt and equity enhancing a firm’s value. [ 68] ,

found that the D/E ratio and firm size both had a

substantially negative impact on business

performance; however, liquidity and tangible assets

had a substantially positive impact on company

performance. [ 69] , revealed that the impact of

capital structure on performance was inconclusive

according to the evidence. [70], found that firm value

was affected not only by the D/E ratio and firm size

but also by the mediating effect of ROA. [ 71] ,

reported that the D/E ratio demonstrated a positive

influence on ROE, ROA, and Tobin’s Q, with

Tobin’s Q displaying the most marked impact. In the

work by [72] capital structure was negatively related

to firm performance.

Earnings per share (EPS) evaluates the

profitability of companies. It represents a company's

earnings allocated to each outstanding common

share. Companies with higher EPS generally indicate

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better operating results which is attractive to

investors. Investors use EPS to compare the earnings

performance of different companies and assess which

ones are generating higher profits relative to their

outstanding shares. Investors often use EPS as a basis

for evaluating the attractiveness of a stock.

Increasing EPS over several periods is a positive

indication, meaning that companies are becoming

more profitable or expanding their operations.

The correlation between EPS and firm value is

interesting in financial research. Many scholars have

studied this relationship from various perspectives,

considering factors like profitability, market

sentiment, and financial performance. [73], detected

a significant positive relationship existed between

EPS and last-day share price. [ 74], found that EPS

was a fundamental aspect of company strategy

aiming at internal and external factors to increase

firm value. [ 75] , found a negative relationship

between net profit and stock price, but a positive

association between EPS and share price. [ 76] ,

affirmed there was a positive relationship between

EPS and market price, but on the other hand EPS did

not insignificantly influence the price-to-earnings

ratio. [ 77] , revealed that earnings surprise and its

interaction with book value per share had a negative

but insignificant impact on share prices. [ 78] ,

revealed that earnings and book value of equity

positively and significantly affected stock prices. In

addition, earnings explained the higher variation in

security values compared to the book value of equity.

Cash flow from operation activities to total

assets (CFOTA) helps assess how efficiently

companies generate cash from their core operation

activities when compared to total assets. A strong

operating cash flow to total assets ratio indicates that

the company can generate sufficient cash flow to

cover its operational needs, and potentially invest in

growth opportunities without relying too much on

outside financing or sales of assets.

The association between operations cash flows

(CFO) and firm value has been a subject of interest

for scholars and researchers in finance and

accounting. [ 79] , revealed that operating and

financing cash flows are significantly and positively

related to firm performance. [ 80] , found that cash

flows for operations positively correlated with future

profitability. In addition, cash flows from

investments can classify the most profitable

companies in the medium-long term, while cash

flows from operations reflect corporate profitability

in the short term. [ 81] , found a strong relationship

between operating cash flows and earnings per share.

[82], found that the joint earnings and cash flow were

significantly and positively related to firm value.

[83], discovered that cash flow growth was positively

associated with stock returns. In addition, operating

activities explained more than investment activities

of stock return. [84], revealed that companies with

cash holding levels negatively affected the firm

value, while firms with a smaller cash holding level

have a higher value. [ 85] , found that the operating

and financing cash flows were negatively related to

financial distress. However, investigating cash flows

positively relates to financial distress. [ 86] ,

contended that earnings and cash flows had firm

value relevance. [ 87] , suggested that performance

improvement levers using cash flow measurement

were more pronounced in low-leverage firms.

Cash flow from investing activities to total

assets (CFITA) helps assess how efficiently a

company allocates capital for investments in assets

such as property, plant, equipment, and acquisitions.

A higher ratio implies that the company is

successfully using its assets to create cash flows. This

ratio also indicates a company's investment strategy.

It can reveal whether the company is making prudent

investments that contribute positively to cash flow or

if it is engaging in excessive, unproductive, or high-

risk investments, especially if the investments do not

yield the expected returns.

The association between investing cash flows

and firm value is a vital subject of financial analysis

and valuation. Scholars have explored various

aspects of investing cash flows within the broader

context of firm value and financial performance.

[ 88] , found that the investing cash flows of high-

growth firms significantly explained unexpected

stock returns, whereas the investing cash flows of

low-growth firms were considered over investments.

[ 83] , noted that cash flow growth was positively

associated with stock returns. Furthermore, operating

activities explained the investment activities of the

firm. [ 89] , found that investing cash flows added

value to both firm value and performance. However,

investing cash flows did not serve as effective and

clear indicators of the correlation between firm value

and firm performance. [90], found that the higher the

investing cash flows, the higher the stock return.

However, the positive change in the financing cash

flow tended to reduce this return. Nonetheless, this

return was not affected by operating cash flows.

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Cash flow from financing activities to total

assets (CFFTA) helps assess a company's capital

structure and how it funds its operations and growth.

It indicates that the company relies on external

financing (e.g., debt and equity issuance) to support

its asset base and to gauge a company's financial risk.

The correlation between cash flows from

financial activities and firm value has also been

explored in academic literature, although it may not

be as extensively studied as much as other aspects of

cash flows. Researchers and scholars have

investigated how cash flows from financial activities,

such as debt issuance, equity financing, and dividend

payments, can affect a firm's value. [ 91] , indicated

that financing cash flows significantly and negatively

affected ROA and ROE. [92], found that firms with

higher capital budgeting enhanced their firm value,

resulting in financing cash inflows and outflows to

investing activities. [93], revealed that the operating

cash flow had a statistically significant positive effect

on profitability. In addition, financing cash flows

were negatively but significantly related to corporate

profitability.

In summary, this study has explained both

theoretical concepts and how previous studies used

independent variables. The next section explains the

research methodology.

3 Research Methodology

3.1 Dataset and Statistical Analysis

The population includes all listed companies on the

SET during 2018 – 2021 and in total the number of

listed companies is 626, 2,504 observations. This

study is based on a quantitative methodology using

archival data collected from the SETSMART

database (Stock Exchange of Thailand Market

Analysis and Reporting Tool). Table 1 summarizes

the total population of this study.

Table 1. Dataset

Population

3,408

Irrelevant samples (Finance and securities, banking, and

insurance)

156

Initial samples

3,252

Excluding

Missing financial data

284

Outlier data

464

Final samples (firm years)

2,504

Final samples (firms)

626

Descriptive statistics are employed to summarize

the variables and to provide a general overview of the

data and the nature of the basic statistical

distribution. After data collection is completed, the

study uses the spread of the middle half of the data

which is called the interquartile range (IQR). This is

to assess the variability where most of values lie to

identify outliers, and to test whether data are

normally distributed, [ 94] , [ 95] . Also, Box-Cox

transformation is typically applied to non-normal

data or data with heteroscedasticity (unequal

variances) to make it more suitable for various

statistical techniques and assumptions that require

normally distributed and homoscedastic data, [ 96] ,

[97], [98].

3.2 Regression Model and Definitions of

Variables

Table 2 (Appendix) provides detailed information

about the variables used in the study, including how

each variable is measured and references to previous

studies that have used these variables. The table is

divided into two sections: dependent variables and

independent variables.

For the dependent variables, Tobin’s Q (TQ) is

measured as the sum of the equity market value and

liabilities market value, divided by the sum of the

equity book value and liabilities book value. This

measurement is based on the method used in a

previous study, referenced as [32]. The book value

per share (BVPS) is calculated by subtracting

preferred stock from stockholder's equity and

dividing the result by the total number of shares

outstanding, as indicated in reference [33]. The

market value per share (MVPS) is obtained by

dividing the total market value by the total number of

shares outstanding, with the methodology supported

by references [34] and [35]. The price per book value

(PB) is determined by dividing the market

capitalization by the book value of equity, as

referenced in studies [36] and [37].

In terms of independent variables, cash dividend

payment (CDP) is a binary variable where a value of

1 indicates that the company pays a cash dividend,

and a value of 0 otherwise, as seen in references [43],

[44] and [45]. The liquidity ratio (CACL) is

calculated by dividing current assets by current

liabilities, following the approach in references [53],

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[54] and [55]. The financial policy variable (DE) is

represented by the ratio of total liabilities to total

equity, with supporting references [70], [71] and

[72]. Retained earnings (RETA) are measured as the

ratio of retained earnings to total assets, based on

studies [58], [59] and [60]. Earnings per share (EPS)

are calculated by dividing net income available to

common stockholders by the number of shares

outstanding, as shown in references [76], [77] and

[78]. Cash flows from operations (CFOTA) are

measured by dividing cash flow from operations by

total assets, supported by references [85], [86] and

[87]. Cash flows from investing (CFITA) are

determined by dividing cash flow from investing by

total assets, as indicated in references [83], [89] and

[90]. Finally, cash flows from financing (CFFTA) are

measured by dividing cash flow from financing by

total assets, as described in references [91], [92] and

[93].

3.3 Model Specifications

The model specifications for the study are designed

to meet the study's objectives by setting out the

following model:

Model 1

TQi

= β0+β1CDP+β2CACL+β3 DE+

β4RETA+β5 EPS+β6 CFOTA+

β7ICFITA+β8CFFTA+ε

Model 2

BVPSi

Model 3

MVPSi

Model 4

PBi

In this model, TQi represents Tobin’s Q for

company i. The term β0 is the intercept, and β1

through β8 are the coefficients for the independent

variables. The error term is denoted by ε. This model

aims to analyze the relationship between Tobin’s Q

and various independent variables, including cash

dividend payment, liquidity ratio, financial policy,

retained earnings, earnings per share, and different

types of cash flows.

4 Outcomes

4.1 Descriptive Analysis

Table 3 (Appendix) presents the descriptive statistics:

mean, standard deviation (SD), minimum, and

maximum. The table also includes skewness and

kurtosis of all variables. For the dependent variables,

the mean of Q (TQ) is 1.07 (SD = 1.78), ranging

from 0.02 – 59.54. In addition, the range of book

value per share (BVPS) ranges from -58.98 to

521.56, with a mean of 12.12 and SD equals 36.5.

With a mean value of 17.4 and an SD of 47.28, the

market value per share (MVPS) ranges from 0.01 to

486. The mean price to book value (PB) is 2.58 and

the standard deviation is 24.7, ranging from -11.64 to

1,206.90. For the independent variables, the mean of

current assets to current liabilities (CACL) is 2.27

(SD = 2.13), ranging from 0.07 – 14.85. Moreover,

the range of debt to equity (DE) lies between -31.17

and 29.52, with a mean of 1.18 and an SD equal to

2.16. With an average value of 0.53 and an SD of

13.93, the retained earnings to total assets (RETA)

runs from -445.28 to 426.09. The average earnings

per share (EPS) is 0.76 and an SD of 3.91, ranging

from -64.68 to 50.42. In addition, the range of cash

flows from operations to total assets (CFOTA) is

between -1.57 and 2.74, with a mean of 0.06 and an

SD of 0.13. With an average value of 0.02 and an SD

of 0.06, the cash flow from investing to total assets

(CFITA) runs from -0.13 to 0.18. Lastly, with an

average value of -0.01 and an SD of 0.08, the cash

flows from financing to total assets (CFFTA) run

from -0.21 to 0.15.

The Skewness and Kurtosis are shown in Table 3

(Appendix). It is noted that the raw data indicates

outlier concerns. However, after taking IQA and

Boxcox, the value is not above 3, [99]. Therefore, no

outlier will affect the analysis.

4.2 Data Validity and Reliability

The data sources for this study comprised companies'

financial data stored in the SET database.

SETSMART is a reliable source of information that

meets the accuracy requirements for companies listed

on the SET. Therefore, the study had content validity.

After data collection is completed the regression

assumption tests are executed. First of all, the study

uses the IQR to assess the variability where most of

the values lie and to identify outliers, and test

whether the data are normally distributed, [94] . Also,

Box-Cox transformation is typically applied to non-

normal data or data with heteroscedasticity (unequal

variances) to make it more suitable for various

statistical techniques and assumptions that require

normally distributed and homoscedastic data, [96] .

To overcome the problem of multicollinearity, it is

essential to ensure that no correlation between the

independent variables exists. This can be checked by

analyzing the statistical values of the variance

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inflation factor (VIF). Indicated here is the absence

of multicollinearity issues of all independent

variables having tolerance values above 0.5 or VIF

values below 10, [100] . Moreover, the direct terms

were transformed into mean-centered to avoid

multicollinearity problems. After those techniques

were employed, it emerged that the VIF value < 10

and the Pearson correlation among all predictor

variables is lower than 0.8, [101] as shown in Table 4

(Appendix). Therefore, all assumptions tests indicate

there are no problems in the multivariate regression

analysis assumptions.

4.3 Empirical Results

The regression analysis results are divided into three

outcomes: two years (2018 – 2019) before allowing

the temporary relief for additional accounting

options; two years (2020 – 2021) after allowing the

temporary relief for additional accounting options;

and lastly, the combination of four years is analyzed.

Table 5 (Appendix) demonstrates the regression

results of the four dependent variables including

Tobin’s Q (Model 1), book value per share (Model

2), market to book per share (Model 3) and price to

book (Model 4) before allowing the temporary relief

for additional accounting options.

Model 1 reveals that current assets to current

liabilities (CACL), D/E ratio, earnings per share

(EPS) relate to Tobin’s Q at the significance level of

.01, while retained earnings to total assets (RETA),

operating cash flows, and investing cash flows relate

to Tobin’s Q at the significant level of .05. The

adjusted R2 equals 24.30%. Model 2 reveals that

earnings per share (EPS), which relates to book value

per share at the significance level of .01. The

adjusted R2 equals 32.90%. Model 3 reveals that

current assets to current liabilities (CACL), retained

earnings to total assets (RETA), earnings per share

(EPS), cash flows from investing activities relate to

market value per share at the significance level of

.01, while cash dividend payout ratio and cash flows

from operation activities relate to Tobin’s Q at the

significance level of .05. The adjusted R2 equals

55.30%. Model 4 reveals that current assets to

current liabilities (CACL), earnings per share (EPS)

and operating cash flows relate to price to book at the

significance level of .01, while cash flows from

investing activities relate to price to book at the

significance level of .05. The adjusted R2 equals

14.50%.

Table 6 (Appendix) summarizes the regression

results of the four dependent variables including

Tobin’s Q (Model 1), book value per share (Model

2), per share (Model 3), and price to book (Model 4)

after allowing the temporary relief for additional

accounting options. Model 1 reveals that the model

shows a goodness of fit as indicated by the

coefficient of determination adjusted R2 with a value

of 45.20%. Debt to equity (DE) and retained earnings

to total assets (RETA) negatively relate to Tobin’s Q,

β = -0.394 (p < .01), -0.119 (p < .01), respectively.

However, cash dividend payout ratio (CDP), earnings

per share (EPS) and cash flows from investing

activities (CFI) positively related to Tobin’s Q, β =

0.290 (p < .01), 0.046 (p < .01), 1.513 (p < .1),

respectively.

Model 2 reveals that the model shows a goodness

of fit as indicated by the coefficient of determination

adjusted R2 with a value of 42.80%. Current assets to

current liabilities (CACL), debt to equity (DE), cash

flows from financing activities (CFO) negative relate

to book value per share, β = -0.103 (p < .05), -0.110

(p < .05), -1.419 (p < .05), respectively. However,

cash dividend payout ratio (CDP), retained earnings

to total assets (RETA) and earnings per share (EPS)

relate to book value per share, β = 0.213 (p < .05),

0.111 (p < .01), 0.269 (p < .01), respectively.

Model 3 reveals that the model shows a goodness

of fit as indicated by the coefficient of determination

adjusted R2 with a value of 50.50%. Debt to equity

(DE) negatively relates to market value per share, β =

-0.092 (p < .1). However, cash dividend payout ratio

(CDP), earnings per share (EPS), and cash flows

from investing activities (CFI) positive relate to

market value per share, β = 0.324 (p < .01), 0.347 (p

< .01), 2.092 (p < .01), respectively.

Model 4 reveals that the model shows a goodness

of fit as indicated by the coefficient of determination

adjusted R2 with a value of 12.80%. Retained

earnings to total assets (RETA) and cash flows from

financing activities negatively relate to price to book,

β = -0.144 (p < .01), -1.431 (p < .05), respectively.

However, cash dividend payout ratio (CDP), earnings

per share (EPS) and cash flows from investing

activities (CFI) positively relate to price to book, β =

0.248 (p < .01), 0.060 (p < .01), 1.788 (p < .05),

respectively.

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5 Discussion

The objective of this study is to explore the value

relevance of accounting information on market-based

performance. To undertake a thorough check of the

informative value, this study employs 4 firm value

proxies for the dependent variables, these being

Tobin’s Q, market value per share, book value per

share, and price to book value. In addition, the well-

known dependent variables are used for the analysis.

The significant findings are summarized in Table 7

(Appendix).

Firstly, the earnings per share significantly relate

to all four firm values positively both before and after

the temporary relief for additional accounting

options. This outcome agrees with previous studies,

[76], [78]. A similar result showing cash flows from

investing activities significantly relate to firm values

positively, except book value per share both before

and after the temporary relief for additional

accounting options. It agrees with previous studies

[ 89] , [ 90] and it means that with or without

temporary relief for additional accounting options,

earnings per share have been considered as one of the

good indicators of firm value.

Secondly, the empirical results confirm that

during Thailand’s economic turmoil, the listed

companies are more likely to pay dividends, [41],

[44]. This is because companies will pay them to

reassure investors that the company remains stable

and financially sound, which can help maintain or

even increase the company's stock price.

Furthermore, dividends can attract investors seeking

extra income, especially during uncertain economic

times when other investments may be less attractive

or riskier. In addition, not paying dividends during

times of economic turmoil could send a signal to

investors that the company is in financial distress,

which could lead to further stock price declines and

loss of market share.

Third, the D/E ratio negatively relates to Tobin’s

Q both before and after the temporary relief for

additional accounting options, [66], [68]. This means

that the increase in the D/E ratio is more likely to

decrease firm value both before and after the

temporary relief for additional accounting options.

Finally, the results suggest that cash flows from

financing activities may not reliably reflect firm

value, even when accounting options are temporarily

expanded. This discrepancy could stem from market

factors like investor attitude or trends, which may not

consistently align with the firm value. Consequently,

fluctuations in cash flows from financing activities

might occur without corresponding changes in firm

value. Moreover, financing cash flows often involve

long-term liabilities, common stocks, and treasury

stock, which may not accurately reflect the ongoing

value of the firm's activities.

6 Theoretical Contributions

This research suggests that accounting information

offers valuable insights to users of financial

statements. This supports the concept of the

economic value of accounting information, [ 16] ,

[66]. Numerous regulatory bodies mandate entities to

prepare and reveal financial statements adhering to

accounting standards. Adhering to these rules

bolsters the dependability and trustworthiness of the

data, thereby amplifying its worth for decision-

making. Moreover, these standards necessitate

entities to divulge pertinent details in their financial

statements, such as contingent liabilities, related

party transactions, and key accounting policies, all of

which are crucial for decision-making. Additionally,

accounting information fosters transparency and

accountability within organizations by offering a

comprehensive view of financial operations and

outcomes, thereby cultivating stakeholder trust.

7 Practical Implications

For regulators like security exchange commissions,

central banks, and accounting standard setters, when

there is signaling of economic instability, these

regulators should carefully consider what are

accounting measures to stabilize economic

conditions. This study indicates that after the

temporary relief of TFRS during the COVID-19

pandemic, severe damage is not considered to have

happened. One of the reasons is the overall financial

asset value of listed companies, which are deemed

fundamental to the Thai economy, so it is a situation

of “business as usual”. This result indicates the

Temporary relief of TFRS during COVID-19,

especially asset impairment is considered a proper

measurement of a local option of applying full TFRS.

Therefore, fair value accounting is one of vital topics

being scrutinized when there are signs of economic

turmoil. However, as long as the assets can be used

in regular businesses, for example properties are still

in use, machinery and equipment continuously

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produce goods and services on a regular basis,

inventories can be sold for local customers, and asset

impairment may not be considered necessary, [102],

[103], [104], [105].

For investors, even in economic instability,

accounting information still aids investors in

evaluating a company's financial well-being.

Financial ratios and performance metrics still gauge

the company's profitability, liquidity, and solvency.

This analysis helps them assess the company's

investment potential, including its growth prospects,

risk profile, and future cash flow potential, crucial for

making well-informed investment decisions.

Additionally, accounting information enables

investors to compare investment options by

evaluating the financial performance and position of

various companies within the same industry or

sector, helping them identify the most appealing

investment opportunities. In essence, accounting

information serves as a fundamental tool for

investors in their decision-making process. This

empirical study indicates that earnings per share,

cash flows from investing activities, and debt to

equity ratios provide incremental information value

to investors.

For management teams, financial statements

serve as a means of communication with investors

and other stakeholders, allowing management to

showcase the company's financial health and

performance, potentially attracting investment and

bolstering market-based performance. Adherence to

accounting standards and regulations is mandatory

for companies in preparing financial statements,

ensuring transparency and accountability.

Furthermore, these statements offer crucial insights

into the company's financial status and performance,

aiding in the formulation of strategic plans and

initiatives.

8 Limitations

This study is based on a sample of Thai publicly

listed companies. The Thai economy has unique

characteristics. More studies on this issue should be

conducted in different dataset environments in the

future. This will help to generate more knowledge

about the informative value of the relevance of

accounting information. Several new aspects should

be introduced into future analyses, including GDP,

stock exchange index, and companies’ external

environments. Longitudinal data should be seriously

considered when new research is conducted on this

topic.

9 Conclusion

This study is mainly motivated by the lack of studies

on the lack of value relevance on the Thai capital

market as well as the pressure to fully adopt IFRS in

this emerging economy. The study aims to examine

the extent to which accounting information explains

variations in firm value in the Thai capital market

during the temporary relief measurement of TFRS

during the COVID-19 pandemic. The population

includes the listed companies on the SET during

2018-2021 covering two years before and after the

COVID-19 pandemic. Overall, the study finds that

accounting information provides value relevance

even in unstable economic conditions. The empirical

finding indicates that accounting information

correlates to market-based performance at high levels

of significance. In more detail, the earnings per share

and cash flow from investing activities significantly

relate to market-based performance positively even

in unstable economic conditions. In addition, the debt

to equity ratio negatively relates to Tobin’s Q.

Moreover, financing cash flows are less likely to

reflect market-based performance. Crucially, fair

value accounting is one of the vital topics being

scrutinized when there are signs of economic turmoil.

Declaration of Generative AI and AI-assisted

Technologies in the Writing Process

During the preparation of this work the authors used

ChatGPT in order to have language refinement and

get idea generation. After using this tool/service, the

authors reviewed and edited the content as needed

and take full responsibility for the content of the

publication.

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APPENDIX

Table 2. Variable measurements

Variable

Measurement

studies

Dependent variables

TQ (Tobin’s Q)

(Equity Market Value + Liabilities Market value)

(Equity Book Value + Liabilities Book value)

[32]

BVPS ([1])

Stockholder′s Equity − Preferred Stock

Total Share Outstanding

[33]

MVPS (Market value per share)

Total Market Value

Total Share Outstanding

[34] , [35]

PB (Price per book value)

Market capitalization

Book Value of Equity

[36] , [37]

Independent variables

CDP (Cash Dividend payment)

1 if the company pay cash dividend; otherwise, 0

[43], [44], [45]

CACL (Liquidity ratio)

Current assets to current liabilities

[53], [54], [55]

DE (Financial policy)

Total liabilities to total equity

[70], [71], [72]

RETA (Retained earnings)

Retained earnings to total assets

[58], [59], [60]

EPS (Earnings per share)

Net income available to common stockholders to the number of shares

outstanding

[76], [77], [78]

CFOTA (Cash flows from operations)

Cash flow from operations to total assets

[85], [86], [87]

CFITA (Cash flows from investing)

Cash flow from investing to total assets

[83], [89], [90]

CFFTA (Cash flows from financing)

Cash flow from financing to total assets

[91], [92], [93]

Table 3. Descriptive Statistics

Mean

Max

Min

Raw data

After IQR

After IQR and Boxcox

Skewness

Kurtosis

Skewness

Kurtosis

Skewness

Kurtosis

1.07

1.78

59.54

0.02

16.957

492.40

11.94

3.22

1.14

0.61

BVPS

12.12

36.5

521.56

-58.98

7.34

71.51

24.46

21.14

1.69

2.9

MVPS

17.4

47.28

486.00

0.01

5.66

37.97

18.35

13.32

1.59

2.30

2.58

24.7

1,206.90

-11.64

46.89

2,278.71

12.92

4.34

1.13

0.76

CACL

2.27

2.13

14.85

0.07

2.16

5.35

13.03

5.27

1.14

0.92

1.18

2.16

29.52

-31.17

1.65

66.44

11.22

2.83

0.97

0.06

RETA

0.53

13.93

426.09

-445.28

0.35

791.25

2.38

7.69

0.45

1.07

EPS

0.76

3.91

50.42

-64.68

1.00

73.46

5.56

3.52

0.93

1.06

CFOTA

0.06

0.13

2.74

-1.57

1.88

90.15

-0.66

1.43

-0.06

0.10

CFITA

0.02

0.06

-0.13

0.18

-8.62

223.98

-0.02

2.09

0.01

0.27

CFFTA

-0.01

0.08

-0.21

0.15

-4.68

118.17

3.23

0.37

0.20

0.01

Table 4. Pearson Correlation after Boxcox transformation

BCTQ

BCBVPS

BCMVPS

BCPB

BCCDP

BCCACL

BCDE

BCRETA

BCEPS

BCCFOTA

BCCFITA

BCCFFTA

BCTQ

BCBVPS

-0.012

BCMVPS

-0.023

0.027

BCPB

-0.101

-0.010

-0.046

BCCDP

0.267**

-0.053

0.030

0.029

BCCACL

0.181**

0.054

-0.027

0.019

0.182**

BCDE

-0.410**

-0.094

-0.028

0.100

-0.172**

-0.398**

BCRETA

0.045

-0.033

-0.030

-0.122*

0.170**

0.230**

-0.429**

BCEPS

0.168**

-0.015

-0.086

0.074

0.206**

0.174**

-0.044

0.335**

BCCFOTA

0.318**

-0.002

0.003

0.065

0.242**

0.142**

-0.275**

0.148**

0.159**

BCCFITA

0.112*

-0.104

-0.125*

0.036

0.213**

0.075

0.051

-0.148**

0.272**

BCCFFTA

0.243**

-0.056

-0.005

0.020

-0.097

0.316**

-0.147**

-0.049

-0.622

0.301**

Note: significant at *p<.05, **p<.01, BC = Boxcox transformation

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Table 5. Regressions analysis of accounting information on firm value: two years before the relief measures

Variables

Model 1

Tobin’s Q

Model 2

BVPS

Model 3

MVPS

Model 4

B(t)

Constant

0.098*

(1.668)

0.096

2.077***

(6.372)

0.000

8.872***

(3.861)

0.000

4.018*

(1.855)

0.065

BCCDP

0.061

(0.624)

0.533

0.065

(0.567)

0.571

0.221**

(2.221)

0.027

0.136

1.481)

0.140

BCCACL

-0.145***

(-2.645)

0.009

-0.034

(-0.518)

0.605

-0.193***

(3.335)

0.001

-0.145***

(-2.626)

0.009

BCDE

-0.387***

(-6.601)

0.000

-0.098

(-1.439)

0.151

-0.038

(0.621)

0.535

0.026

(0.452)

0.651

BCRETA

-0.040**

(-1.966)

0.050

0.011

(0.474)

0.636

-0.062***

(-2.952)

0.003

-0.035*

(-1.803)

0.072

BCEPS

0.061***

(3.193)

0.002

0.276***

(12.747)

0.000

0.351***

(18.003)

0.000

0.056***

(3.115)

0.002

BCCFOTA

1.119**

(2.035)

0.043

-0.620

(-0.946)

0.345

1.292**

(2.232)

0.026

2.019***

(3.620)

0.000

BCCFITA

1.368**

(2.179)

0.030

-0.413

(-0.571)

0.569

2.008***

(3.117)

0.002

1.255**

(1.987)

0.048

BCCFFTA

-1.148

(-1.636)

0.103

1.286

(1.536)

0.125

-0.430

(-0.578)

0.564

-0.433

(-0.612)

0.541

R Square

26.30%

34.40%

56.30%

16.50%

Adjusted R2

24.30%

32.90%

55.30%

14.50%

Durbin-Watson

1.866

1.631

1.690

1.763

VIF

1.048-2.892

1.025-2.957

1.065-2.919

1.058-2.871

F-statistic

12.899***

22.940***

56.438***

8.280***

Notes: Significant at *p<.10, **p<.05 and ***p<.01; 1) TBQ: Tobin’s Q, 2) BVPS: Book value per share, 3) MVPS: Market

value per share, 4) PB: Price to book value, 5) CDP: Cash dividend payout ratio, 6) CACL: Current assets to current

liabilities, 7) DE: Debt to equity, 8) RETA: Retained earnings to total assets, 9) EPS: Earnings per share , 10) CFOTA: Cash

flows from operation activities to total assets , 11) CFITA: Cash flows from investing activities to total assets, and 8)

CFFTA: Cash flows from financing activities to total assets.

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Table 6. Regressions analysis of accounting information on firm value: two years after the relief measures

Variables

Model 1

Tobin’s Q

Model 2

BVPS

Model 3

MVPS

Model 4

B(t)

Constant

3.302***

(0.9850)

0.000

0.330

(0.119)

0.905

12.310***

(4.964)

0.000

BCCDP

0.290***

(3.462)

0.001

0.213**

(2.433)

0.015

0.324***

(3.658)

0.000

0.248***

(3.143)

0.002

BCCACL

-0.007

(-0.153)

0.878

-0.103**

(-2.071)

0.039

-0.045

(-0.872)

0.384

0.017

(0.373)

0.710

BCDE

-0.394***

(-7.914)

0.000

-0.110**

(-2.182)

0.030

-0.092*

(-1.755)

0.080

-0.023

(-0.488)

0.625

BCRETA

-0.119***

(-4.695)

0.000

0.111***

(4.657)

0.000

0.017

(0.645)

0.519

-0.144***

(-4.950)

0.000

BCEPS

0.046***

(10.130)

0.000

0.269***

(13.858)

0.000

0.347***

(16.915)

0.000

0.060***

(3.356)

0.001

BCCFOTA

0.683

(0.971)

0.332

-1.419**

(-2.052)

0.041

-0.011

(-0.016)

0.988

0.278

(0.422)

0.673

BCCFITA

1.513*

(1.821)

0.070

0.619

(0.759)

0.448

2.092***

(2.419)

0.016

1.788**

(2.272)

0.024

BCCFFTA

-0.923

(-1.277)

0.202

-0.050

(-0.069)

0.945

-0.804

(-1.047)

0.296

-1.431**

(-2.082)

0.038

R Square

46.40%

43.80%

51.40%

14.50%

Adjusted R2

45.20%

42.80%

50.50%

12.80%

Durbin-Watson

2.066

2.101

1.961

1.872

VIF

1.654-16.925

1.177-3.084

1.161-3.077

1.122-3.007

F-statistic

37.022***

55.678***

56.400***

8.885***

Notes: Significant at *p<.10, **p<.05 and ***p<.01; 1) TBQ: Tobin’s Q, 2) BVPS: Book value per share, 3) MVPS: Market

value per share, 4) PB: Price to book value, 5) CDP: Cash dividend payout ratio, 6) CACL: Current assets to current

liabilities, 7) DE: Debt to equity, 8) RETA: Retained earnings to total assets, 9) EPS: Earnings per share , 10) Cash flows

from operation activities to total assets , 11) CFITA: Cash flows from investing activities to total assets, and 8) CFFTA: Cash

flows from financing activities to total assets.

Table 7. Summary of the significant findings

Two years before the relief

measures

Two years after the relief

measures

Variable

BVPS

MVPS

BVPS

MVPS

CDP

+**

+***

+**

+***

CACL

-***

-**

-***

-**

RETA

-**

-***

+***

-***

EPS

+***

CFOTA

+**

+***

-**

CFITA

+**

+***

+**

+***

+**

CFFTA

-**

Note: - = -coefficient, + = + coefficient, Significant at *p<.10, **p<.05, ***p<0.01

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Contribution of Individual Authors to the

Creation of a Scientific Article (Ghostwriting

Policy)

The authors equally contributed in the present

research, at all stages from the formulation of the

problem to the final findings and solution.

Sources of Funding for Research Presented in a

Scientific Article or Scientific Article Itself

No funding was received for conducting this study.

Conflict of Interest

The authors have no conflict of interest to declare.

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(Attribution 4.0 International, CC BY 4.0)

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Creative Commons Attribution License 4.0

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