Title: A comparative study of the value relevance of accounting information between financial and non-financial companies listed on the Ghana stock exchange

Authors: Basil Abeifaa Der; Masairol Haji Masri; Mohammed Salisu Abubakari

Addresses: Diligence Consult, Wa, P.O. Box 206,Ghana West Africa, Wa – Upper West, Region, PEPC Satellite House, Sombo, Accra, Ghana ' School of Business and Economics, Universiti Brunei Darussalam, Jalan Tungku Link, Gadong BE1410, Brunei ' Faculty of Integrated Development Studies, University for Development Studies, Post Office Box 520, Tamale, Wa, Ghana

Abstract: We investigate the value relevance of book value, earnings and dividends among financial and non-financial companies listed on the Ghana Stock Exchange from 2005 to 2014. For the sample of non-financial companies, book value and earnings are found to be value relevant. Dividends are only value relevant when earnings are split into dividends and retained earnings. For the sample of financial companies, only dividends and earnings are found to be value relevant. Book value is not value relevant. Largely, accounting information has greater value relevance for the sample of non-financial companies than the sample of financial companies. There is no difference in the explanatory power of the Ohlson (1995) model as compared to the two alternative models under investigation. Largely, IFRS adoptions have a significant effect on the value relevance of accounting information. The results have implications for both policy makers and investors.

Keywords: value relevance; accounting information; Ghana Stock Exchange; GSE.

DOI: 10.1504/AAJFA.2018.093466

Afro-Asian Journal of Finance and Accounting, 2018 Vol.8 No.3, pp.271 - 295

Received: 22 Sep 2016
Accepted: 30 Aug 2017
Published online: 26 Jul 2018 *

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