SciELO - Scientific Electronic Library Online

 
vol.20 issue1Fractional Black-Scholes option pricing, volatility calibration and implied Hurst exponents in South African contextAssembly of a conduct risk regulatory model for developing market banks author indexsubject indexarticles search
Home Pagealphabetic serial listing  

Services on Demand

Article

Indicators

Related links

  • On index processCited by Google
  • On index processSimilars in Google

Share


South African Journal of Economic and Management Sciences

On-line version ISSN 2222-3436
Print version ISSN 1015-8812

Abstract

ZULU, Mbalenhle; DE KLERK, Marna  and  OBERHOLSTER, Johan G.I.. A comparison of the value relevance of interim and annual financial statements. S. Afr. j. econ. manag. sci. [online]. 2017, vol.20, n.1, pp.1-11. ISSN 2222-3436.  http://dx.doi.org/10.4102/sajems.v20i1.1498.

BACKGROUND: This study tests the value relevance of interim accounting information. The study also explores whether the value relevance of annual and interim financial statements has changed over time. AIM: It explores whether the value relevance of interim financial statements is higher than the value relevance of annual financial statements. Finally, it investigates whether accounting information published in interim and annual financial statements has incremental value relevance. SETTING: Data for the period from 1999 to 2012 were collected from a sample of non-financial companies listed on the Johannesburg Stock Exchange. METHOD: The Ohlson model to investigate the value relevance of accounting information was used for the study. RESULTS: The results show that interim book value of equity is value relevant while interim earnings are not. Interim financial statements appear to have higher value relevance than annual financial statements. The value relevance of interim and annual accounting information has remained fairly constant over the sample period. Incremental comparisons provide evidence that additional book value of equity and earnings that accrue to a company between interim and annual reporting dates are value relevant. CONCLUSION: The study was conducted over a long sample period (1999-2012), in an era when a technology-driven economy and more timely reporting media could have had an effect on the value relevance of published accounting information. To the best of our knowledge, this is the first study to evaluate and compare the value relevance of published interim and annual financial statements.

        · text in English     · English ( pdf )

 

Creative Commons License All the contents of this journal, except where otherwise noted, is licensed under a Creative Commons Attribution License