Value-Relevance of Financial Statement Information: A Flexible Application of Modern Theories to the Vietnamese Stock Market

Nguyen Viet Dung ()
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Nguyen Viet Dung: Department of Financial Management, Faculty of Banking and Finance, Foreign Trade University, Vietnam

No 2, Working Papers from Development and Policies Research Center (DEPOCEN), Vietnam

Abstract: Based on the Ohlson’s model (1995) and the study of Aboody et al. (2002) allowing to relax the semi-strong form of the Efficient Markets Hypothesis, the paper tests the value-relevance of financial statement information on the Vietnamese stock market. Contrary to prevailing views that financial statement information is not related to stock prices in Vietnam, the results show that this relationship is statistically meaningful, though somewhat weaker than in other developed and emerging markets. In addition, there is sign that earnings and book value are reflected in stock prices with a time lag and the value-relevance of earnings becomes much higher during stock market boom periods. These results provide helpful insights to stock market authority and participants for their respective activities.

Pages: 19 pages
Date: 2010
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:dpc:wpaper:0210

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