The value relevance of earnings and cash flows under International Financial Reporting Standards: the case of Greece

Konstantinos Papadatos () and Vasiliki Makri

International Journal of Accounting, Auditing and Performance Evaluation, 2013, vol. 9, issue 2, 184-198

Abstract: The aim of this study is to investigate the value relevance of earnings and cash flows, after the mandatory adoption of International Financial Reporting Standards (IFRS) in Greece. According to accounting literature, value relevance is defined as the ability of financial information contained in the financial statements to reflect the value of the company, when the latter is based on share prices. The presentation of yearly cross-sectional regressions for the period 2005 to 2010 revealed that cash flows under IFRS do not contain incremental information as compared to the earnings under IFRS, when both cash flows and earnings are included in the same model.

Keywords: International Financial Reporting Standards; IFRS; earnings; cash flows; incremental value relevance; mandatory adoption; Greek firms; Greece. (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijaape:v:9:y:2013:i:2:p:184-198

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