THE VALUE RELEVANCE OF FINANCIAL INFORMATION UNDER THE INFLUENCE OF COUNTRY RISKS. THE CASE OF THE INDIAN LISTED COMPANIES

Ioan-Bogdan Robu (), Costel Istrate, Mihai Carp (), Cristian Popescu () and Mihaela-Alina Robu ()
Additional contact information
Ioan-Bogdan Robu: Alexandru Ioan Cuza University of Iasi
Mihai Carp: Alexandru Ioan Cuza University of Iasi
Mihaela-Alina Robu: Alexandru Ioan Cuza University of Iasi

Review of Economic and Business Studies, 2016, issue 18, 77-93

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.

Keywords: Indian capital markets; financial information; value relevance; risk country (search for similar items in EconPapers)
JEL-codes: M41 O16 O53 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://rebs.feaa.uaic.ro/articles/pdfs/228.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aic:revebs:y:2016:j:18:istratec

Access Statistics for this article

More articles in Review of Economic and Business Studies from Alexandru Ioan Cuza University, Faculty of Economics and Business Administration Contact information at EDIRC.
Bibliographic data for series maintained by Sireteanu Napoleon-Alexandru ().