Universal Journal of Accounting and Finance Vol. 4(3), pp. 107 - 116
DOI: 10.13189/ujaf.2016.040302
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Company's Characteristics and Accounting Information Relevance


Dhiaa Shamki *, Ibrahim Khalaf Alulis
Department of Managerial and Financial Science, Al Zahra College for Women, Sultanate of Oman

ABSTRACT

The paper examines whether company's characteristics, namely, stockholders number, listing status and company's age affect its accounting information relevance and which stock price measure, among average price, closing price and after three months price, is more dependable in pointing out the accounting information value relevance for a sample consists of 91 companies in the services and industrial sectors in Jordan within 2004-2013. Using price model, it is found that companies with larger stockholder numbers, listed on Amman Stock Exchange primary market, and that are older in age yield greater value relevance for per share earnings and book value. Book value has the greatest value relevance being the best predictor for firm value, while cash flows showed insignificant results. Finally, we concluded that closing price is the most dependable among the three stock price measures in detecting the accounting information value relevance in Jordan. The paper presents the ability of valuation theory/model to interact with other theories by including the effect of non-accounting information on the accounting information value relevance. Our findings might present evidence that can serve the educational institutions in their courses and provide a guideline to investors, managers and financial analysts to better summarize the firm value.

KEYWORDS
Value Relevance, Stockholders Number, Listing Status, Company's Age, Jordan

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Dhiaa Shamki , Ibrahim Khalaf Alulis , "Company's Characteristics and Accounting Information Relevance," Universal Journal of Accounting and Finance, Vol. 4, No. 3, pp. 107 - 116, 2016. DOI: 10.13189/ujaf.2016.040302.

(b). APA Format:
Dhiaa Shamki , Ibrahim Khalaf Alulis (2016). Company's Characteristics and Accounting Information Relevance. Universal Journal of Accounting and Finance, 4(3), 107 - 116. DOI: 10.13189/ujaf.2016.040302.