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:: year 17, Issue 67 (2025) ::
fa 2025, 17(67): 91-107 Back to browse issues page
The Effect of Financial Statement Comparability on the Value Relevance of Accounting Information Based on Valuation and Earnings Selectivity
Azita Jahanshad *
Department of Accounting, CT.C., Islamic Azad University, Tehran, Iran.
Abstract:   (24 Views)
In general, investor behavior plays a significant role in the valuation of shareholders’ equity. In this regard, financial statement comparability, as an enhancing qualitative characteristic, influences investors’ decision-making and evaluation through two main channels and constitutes the conceptual foundation of the value relevance of accounting information. Accordingly, the primary objective of this study is to examine the effect of financial statement comparability on the value relevance of accounting information based on valuation and earnings selectivity. In this study, 170 companies listed on the Tehran Stock Exchange were examined over the period 2015–2024 using EViews software. Panel regression models were employed to test the research hypotheses. The findings indicate that financial statement comparability has a positive and statistically significant effect on the value relevance of balance sheet and income statement information based on valuation and earnings selectivity. The results indicate that enhancing comparability can function as an indirect monitoring mechanism that simultaneously strengthens earnings reliability and the value relevance of both balance sheet and income statement information.


 
Article number: 6
Keywords: Financial Statement Comparability, Value Relevance of Accounting Information, Earnings Valuation, Earnings Selectivity.
Full-Text [PDF 931 kb]   (17 Downloads)    
Type of Study: Research | Subject: Special
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Jahanshad A. The Effect of Financial Statement Comparability on the Value Relevance of Accounting Information Based on Valuation and Earnings Selectivity. fa 2025; 17 (67) : 6
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year 17, Issue 67 (2025) Back to browse issues page
فصلنامه حسابداری مالی Quarterly Financial Accounting
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