Portsmouth Business School
Dr. Thamir Saad Albarrak
The value reference of earnings and book value for equity valuation in the emerging Saudi Arabian stock market
Department: Accounting and Finance
Email: thamir.albarrak@port.ac.uk
Nationality: Saudi Arabian
Director of Studies: Professor Mike Page
Year of graduation: N/A
Thesis summary
Investigating changes in the value relevance of accounting amounts has been a focused issue in the value relevance literature. These studies were motivated by previous concerns that financial statements information has become less value relevant overtime to investors who should be provided with useful information for efficient decision making. The evidence obtained from the previous literature on whether accounting information lost its relevance is still contradictory and the results obtained from one country may not apply to other countries since financial reporting, economic condition, legal system, investment environment, and business culture vary from one country to another.
My research is concerned with testing the value relevance of accounting information prepared according to the Saudi Accounting Standards to provide empirical evidence on the relevance and reliability of accounting numbers as reflected in equity values and to assess the factors that are likely to have an effect on the value relevance in a Saudi context. This study employs the theoretical framework of Ohlson (1995) and uses the coefficient of determination as a primary metric to measure value relevance.