Value relevance of reported financials of NSE listed companies Online publication date: Tue, 07-Jul-2020
by Mwila J. Mulenga; Meena Bhatia
Afro-Asian J. of Finance and Accounting (AAJFA), Vol. 10, No. 3, 2020
Abstract: The purpose of this paper is to examine value relevance of accounting information in Indian stock market. The study focuses exclusively on the listed firms under Nifty 100 from 2001 to 2015, and uses price and returns models. The findings under both models suggest that accounting information has the significant ability in influencing stock prices and stock returns during the entire period covered by this study. Further analysis shows that book value per share is more relevant for loss-making firms while earnings per share are more relevant for profit-making firms. Based on industry classification, the value relevance of accounting information reported is high in metal industry, infrastructure, energy, financial services, automobiles and services industry and low in consumption and pharma industry. Study concludes that accounting information is relevant for investment decisions and investors must focus on this information to make informed investment decisions.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the Afro-Asian J. of Finance and Accounting (AAJFA):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook