THE VALUE RELEVANCE OF FINANCIAL INFORMATION UNDER THE INFLUENCE OF COUNTRY RISKS. THE CASE OF THE INDIAN LISTED COMPANIES
THE VALUE RELEVANCE OF FINANCIAL INFORMATION UNDER THE INFLUENCE OF COUNTRY RISKS. THE CASE OF THE INDIAN LISTED COMPANIES
Author(s): Ioan Bogdan Robu, Mihai Carp, Costel Istrate, Cristian Popescu, Mihaela Alina ROBUSubject(s): Business Economy / Management, Financial Markets, Accounting - Business Administration
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: Indian capital markets; financial information; value relevance; risk country;
Summary/Abstract: In the decision-making process investors need quality financial information based on reported accounting numbers. Such numbers are present in financial statements and must meet a series of fundamental characteristics, such as relevance and faithful representation. The present paper aims to analyse and assess the value relevance of financial information on the financial market in India under the influence of the main country risk components (i.e. economic risk and freedom to set up businesses, corruption control, financial, fiscal, monetary and investment freedom). The research was carried out on a sample of companies listed on the regulated market in India between 2006 and 2014. The results of applying general linear models have shown that, over time, the country risk can have a significant influence on the value relevance of the financial statements reported at the financial market level.
Journal: Review of Economic and Business Studies (REBS)
- Issue Year: 2016
- Issue No: 18
- Page Range: 77-93
- Page Count: 17
- Language: English