IDEAS home Printed from https://ideas.repec.org/a/aoj/ajssms/v3y2016i3p191-197id487.html
   My bibliography  Save this article

Industry Type and Accounting Numbers Relevance: The Case of Jordan

Author

Listed:
  • Dhiaa Shamki
  • Hasan Mohammed Bamahros

Abstract

The paper examines the impact of industry type on the accounting numbers relevance regarding three measures for security price known as average security price, closing security price and after three months security price for Jordanian service and manufacturing sectors within 2004-2013. Three regression models are used with and without control variables. The outcomes of the pooled sample are used in evaluating our hypotheses to reveal which security price is the most dependable. Influenced by the industry type, the relevance of book value regarding the three security measures and that of earnings regarding closing security price are greater in services sector than that in manufacturing sector. Cash flows are irrelevant regarding the three security measures. Our results reveal that closing security price is the most dependable in detecting the value relevance of the accounting numbers. Taking our findings in consideration could enable market participants to better extract the firm’s value through the type of industry that they invest in. Our conclusions regarding the importance of book value is supported by many studies making it being new evidence related to Jordan as one of the Middle Eastern region.

Suggested Citation

  • Dhiaa Shamki & Hasan Mohammed Bamahros, 2016. "Industry Type and Accounting Numbers Relevance: The Case of Jordan," Asian Journal of Social Sciences and Management Studies, Asian Online Journal Publishing Group, vol. 3(3), pages 191-197.
    • Handle: RePEc:aoj:ajssms:v:3:y:2016:i:3:p:191-197:id:487
    as

    Download full text from publisher

    File URL: http://asianonlinejournals.com/index.php/AJSSMS/article/view/487/490
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aoj:ajssms:v:3:y:2016:i:3:p:191-197:id:487. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sara Lim (email available below). General contact details of provider: http://asianonlinejournals.com/index.php/AJSSMS/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.