Value relevance of accounting information in the early years of crisis in Greece

M. Rodosthenous

Abstract


Anyone could agree that the Greek economy has suffered a lot in the period of financial crisis, specifically since 2010 when Greece faced up the fact of bankruptcy.Financial crisis had negative impact on firms’ performance and especially on their profitability and liquidity. Hence,many firms lost a significant part of their market value. Efficient market theory states that market reflects all the available financial information.  In the period of financial crisis, it is important for investors to make their decisions in an efficient market environment.This study explores the change of the value relevance of financial reporting, information in the early years of crisis. Analyzing a sample of Greek listed firms for the period 2010-2012we found evidence that earnings of firms tended to be more relevant than book value as previous studies had stated before.


Keywords


Value relevance, financial statements, accounting information

Full Text:

PDF

References


Armira, A., Armira, E., Drosos, D., Skordoulis, M. &Chalikias, M. (2016). Determinants of consumers behavior toward alcohol drinks: the case of Greek millennials. International Journal of Electronic Customer Relationship Management. 10(1), 14-27.

Ballas, A., Skoutela, D.&Tzovas, C.(2010).The relevance of IFRS to an emerging market:Evidence from Greece. Managerial Finance, 36(11), 931-948.

Barth, M. & Landsman, W. (2010). How did Financial Reporting Contribute to the Financial Crisis?European Accounting Review, 19(3), 399-423.

Chalikias, M., Drosos, D., Skordoulis, M. &Tsotsolas, N. (2016).Determinants of customer satisfaction in healthcare industry: the case of the Hellenic Red Cross.International Journal of Electronic Marketing and Retailing, 7(4), 311-321.

Chytis, E. Koumanakos E.&Goumas.S. (2015).Deferred Tax Positions under the prism of financial crisis and the effects of a corporate tax reform.International Journal of Corporate Finance and Accounting, 2(2), 21-58.

Devalle, A. (2012).Value relevance of accounting data and financial crisis in Europe: an empirical analysis.International Journal of Accounting and Financial Reporting,2(2), 201.

Fetham, G., &Ohlson, J.(1995).Valuation and Clean Surplus Accounting for Operating and Financial Activities.Contemporary Accounting Research, 11(2), 689-731.

Glezakos M., Mylonakis J.&Kafouros Ch.(2012).The Impact of Accounting Information on Stock Prices: Evidence from the Athens Stock Exchange.International Journal of Economics and Finance, 4(2), 56-68.

Habib, A.& Azim, I. (2008).Corporate governance and the value‐relevance of accounting information: Evidence from Australia. Accounting Research Journal, 21(2), 167-194.

Ho, L.C. Liu, C.S. &Sohn P. (2001).The value relevance of accounting information around the 1997 Asian financial crisis - The case of South Korea.Working Paper.Arlington: University of Texas.

Karambinis, N., &Hevas, D. (2011).Effects of IFRS enforcement on tax incentives for earnings management: Evidence from Greece. In: Proceedings of 34th European Accounting Association Annual Congress, LUISS Guido Carli, University of Rome, Italy.

Mion, L., Georgakopoulos, G., Kalantonis, P.&Eriotis, N. (2014).The Value Relevance of Accounting Information in Times of Crisis: An Empirical Study.International Journal of Corporate Finance and Accounting, 1(2),67-92.

Ozkan, S. &Balsari, K. (2010).Impact of Financial Crises on the Value Relevance of Earnings and Book Value: 1994 and 2001 Crises in Turkey.IktisatİsletmeveFinans, 25(288), 301-310.

Pothos, N., Skordoulis, M. &Chalikias, M. (2014).Study of the Greek public servants’ healthcare and insurance organisation financial resources evolution.Management in Health, 18(1), 33-37.

Schleicher, T., Tahoun, A.& Walker, M. (2010). IFRS adoption in Europe and investment-cash flow sensitivity: outsider versus insider economies. The International Journal of Accounting, 45(2), 143-168.

Skordoulis, M., Sarvanaki, G. &Chalikias, M. (2014).The Impact of the Economic Crisis in the Construction Sector in Greece.In: Proceedings of eRA-9 International Scientific Conference.Economy II Session. Piraeus, September 2014. Piraeus: T.E.I. of Piraeus, pp. 36-44.


Refbacks

  • There are currently no refbacks.