THE RELEVANCE OF ACCOUNTING INFORMATION ON THE ROMANIAN CAPITAL MARKET IN THE ERA OF ARTIFICIAL INTELLIGENCE: TRANSFORMATIONS AND OPPORTUNITIES

Andrei Carea and Sorina Ioana Misu

Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, 2024, vol. 18, issue 1, 280-289

Abstract: This study analyzes the relevance of accounting information for companies listed on the Romanian capital market, in a context shaped by alignment with the International Financial Reporting Standards (IFRS) and advancements in artificial intelligence (AI) technologies. In the first part, the paper explores the convergence of the Romanian accounting system with IFRS, examining the evolution of accounting information relevance during the 2008-2021 period and the impact of adopting international standards on financial value and transparency. Using Ohlson's (1995) regression model, the study investigates the correlations between stock prices and accounting indicators, such as book value per share (BV) and earnings per share (EPS), both in the pre-IFRS adoption period and the post-adoption period. The results indicate positive correlations between stock prices and BV and EPS, demonstrating that IFRS contributes to improving the relevance of accounting information for investors. In the second part, the study introduces perspectives brought by AI, highlighting how it is transforming the field of accounting through its advanced data processing and predictive analysis capabilities. AI facilitates a better assessment of financial performance and enhances investors' access to relevant data, contributing to transparency and comparability in financial reporting. Thus, the integration of AI offers new opportunities for accounting professionals and regulatory authorities to align financial practices with international requirements and modern market needs. The study concludes that AI technologies, combined with IFRS, can enhance the accuracy and utility of accounting information, maximizing its relevance for investment decisions in the digital era.

Keywords: artificial intelligence; book value; earnings; emerging economy; Ohlson; value relevance. (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:rom:mancon:v:18:y:2024:i:1:p:280-289

DOI: 10.24818/IMC/2024/03.02

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