Does earnings quality matter? Evidence from the Athens Exchange
Ioannis Asimakopoulos (),
Athanasios Fassas and
Economic Bulletin, 2020, issue 52, 93-112
The relation between accounting earnings and firm valuation has long been a topic of interest to academics and stock market participants. The study analyses the relationship between earn-ings quality and firm value using a sample of non-financial firms with shares listed on the Athens Exchange over the period 2004-2019. The empirical findings indicate that investors value earn-ings quality, and this is reflected in a better valuation for firms having earnings of higher qual-ity. The results are robust to different methodologies and controls for firm-specific factors. The evidence is of particular importance for Greek firms seeking to expand their sources of financ-ing beyond the Greek banking system. Such a development requires constant monitoring and strengthening of the corporate governance framework, with the aim of improving the quality of information conveyed by the firms to investors. In this respect, the provisions of Law 4706/2020 regarding the Greek corporate governance framework and the operation of the Hellenic Capi-tal Market Commission seem to be in the right direction.
Keywords: arnings quality; firm value; Tobin’s Q (search for similar items in EconPapers)
JEL-codes: C33 G32 M41 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bog:econbl:y:2020:i:52:p:93-112
Access Statistics for this article
Economic Bulletin is currently edited by Dimitris Malliaropulos
More articles in Economic Bulletin from Bank of Greece Contact information at EDIRC.
Bibliographic data for series maintained by Anastasios Rizos ().