The value relevance of the performance of listed Italian companies following the introduction of the IAS/IFRS
The value relevance of the performance of listed Italian companies following the introduction of the IAS/IFRS

Summary/Abstract: This paper aims to offer a contribution to the area of value relevance studies. The analyzed variables are therefore partly accounting-related and partly market-related. The specific research area considered concerns the role of the International Accounting Standards (IAS/IFRS), investigating whether the adoption of IAS/IFRS has led to a greater correlation between some important financial statement values (net income, comprehensive income and equity) and stock market capitalization in comparison with ante-IAS/IFRS period. The study focuses on the Italian situation, analyzing a sample of 122 companies listed on the Milan Stock Exchange. We analyse a period of six years (2003-2008). The research shows specific results on the value relevance of accounting information referred to industrial and financial sectors, and to net income in comparison with comprehensive income.

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