The Relationship Between Market Value Per Share, Earnings Per Share and Book Value Per Share in IFRS Implementation Process (Evidence from the BIST 50)

Alper Oflas and Mohammad Reza Toutounchi Asl ()
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Alper Oflas: İstanbul Üniversitesi, İşletme Fakültesi, Muhasebe Bilim Dalı, İstanbul, Türkiye
Mohammad Reza Toutounchi Asl: İstanbul Üniversitesi, İşletme Fakültesi, Muhasebe Bilim Dalı, İstanbul, Türkiye

Muhasebe Enstitusu Dergisi - Journal of Accounting Institute, 2021, vol. 64, issue 64, 71-84

Abstract: Since the beginning of 21st Century, financial reporting has served as the most authoritative criteria of International Financial Reporting Standards (IFRS). The implementation process requires improvement in the quality and comparability of financial reporting and impacts stock value and investors’ decisions. The aim of this study is to determine the statistical power of changes in stock market prices due to the adoption and implementation of IFRS. In this study, book value and earnings per share are defined as independent variables and market value per share is the dependent variable. The statistical subjects of the study included all nonfinancial companies that have been traded in Borsa Istanbul. As the sample set, the research presents a 19-year (2000–2018) review of 24 companies in BIST 50, that are active during the study. Accordingly, data are collected annually (cross-sectional data) and a Least Squares Regression method is applied for analysis. The results reveal that the approval, publication, and implementation of accounting and financial reporting standards increase the relationship between the variables of study and regression increases directly from (0.4713) to (0.8740) from 2005 to 2018.

Keywords: International financial reporting standard (IFRS); book value per share; market value per share; earnings per share (IAS 33) (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ist:imeder:v:0:y:2020:i:64:p:71-84

DOI: 10.26650/MED.663174

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