The Impact of Covid-19 Pandemic on the Value Relevance of Accounting Information
The Impact of Covid-19 Pandemic on the Value Relevance of Accounting Information

Summary/Abstract: Value relevance is defined as a statistically significant relationship between the accounting information presented in financial statements and the corresponding stock prices in the capital market. The objective of this study is to examine the effects of the COVID-19 pandemic on the value relevance of accounting information within the Bulgarian capital market. We analyze the impact of the COVID-19 pandemic on the value relevance of accounting information using panel unit root tests, descriptive statistics, and panel regression models. The results obtained indicate that the COVID-19 pandemic has had a positive impact on the value relevance of accounting information in the Bulgarian capital market. We prove that the book value per share and the sales revenue per share gain value relevance, and these accounting variables influence stock prices after the spread of COVID-19. The financial accounting indicator, dividend per share (DPS), demonstrates increased value relevance in the period after COVID-19 compared to the period before COVID-19. As a result, the period after COVID-19 is characterized by higher levels of value relevance compared to the period before COVID-19.

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