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The Usefulness of Accounting Information on Financial Instruments to Investors Assessing Non-Financial Companies. An Empirical Analysis on the Bucharest Stock Exchange

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  • Maria Carmen Huian

    (Alexandru Ioan Cuza University of Iasi, Romania)

Abstract

The aim of this paper is to study the value relevance of IFRS-based accounting information regarding financial instruments provided by non-financial Romanian groups quoted on Bucharest Stock Exchange for the period 2011-2013. Data from both consolidated and parent-only accounts are tested using a modified Ohlson model to show the empirical correlation between stock market prices and accounting numbers. We find that at parent company level, the information about financial assets is more value relevant than the one about financial liabilities. At group level, investors rely mostly on information about financial assets, ignoring the one about financial liabilities. Moreover, results show the superiority of parent company’s individual accounts over the consolidated ones in terms of value relevance of financial instruments information.

Suggested Citation

  • Maria Carmen Huian, 2015. "The Usefulness of Accounting Information on Financial Instruments to Investors Assessing Non-Financial Companies. An Empirical Analysis on the Bucharest Stock Exchange," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 14(4), pages 748-769, December.
    • Handle: RePEc:ami:journl:v:14:y:2015:i:4:p:748-769
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    Cited by:

    1. Maria Carmen HUIAN, 2015. "Impact Of The Ifrs Adoption On Financial Assets And Liabilities. Empirical Evidence From Bucharest Stock Exchange," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 16, pages 69-90, December.

    More about this item

    Keywords

    financial instruments; value relevance; IFRS; regression analysis;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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