A comparison of the value relevance of interim and annual financial statements

dc.contributor.authorZulu, Mbalenhle
dc.contributor.authorDe Klerk, Marna
dc.contributor.authorOberholster, J.G.I. (Johan Gerhardus Ignatius), 1962-
dc.date.accessioned2017-06-29T08:52:11Z
dc.date.available2017-06-29T08:52:11Z
dc.date.issued2017-03-30
dc.description.abstractBACKGROUND : 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.en_ZA
dc.description.departmentAccountingen_ZA
dc.description.librarianam2017en_ZA
dc.description.urihttp://www.sajems.orgen_ZA
dc.identifier.citationZulu, M., De Klerk, M. & Oberholster, J.G.I., 2017, ‘A comparison of the value relevance of interim and annual financial statements’, South African Journal of Economic and Management Sciences 20(1), a1498. https://DOI.org/ 10.4102/sajems.v20i1.1498en_ZA
dc.identifier.issn1015-8812 (print)
dc.identifier.issn2222-3436 (online)
dc.identifier.other10.4102/sajems.v20i1.1498
dc.identifier.urihttp://hdl.handle.net/2263/61222
dc.language.isoenen_ZA
dc.publisherUniversity of Pretoria, Department of Economicsen_ZA
dc.rights© 2017. The Authors. Licensee: AOSIS. This work is licensed under the Creative Commons Attribution License.en_ZA
dc.subjectAnnual financial statementsen_ZA
dc.subjectInterim financial statementsen_ZA
dc.subjectAccounting informationen_ZA
dc.subjectIncremental value relevanceen_ZA
dc.titleA comparison of the value relevance of interim and annual financial statementsen_ZA
dc.typeArticleen_ZA

Files

Original bundle

Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
Zulu_Comparison_2017.pdf
Size:
3.11 MB
Format:
Adobe Portable Document Format
Description:
Article

License bundle

Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
license.txt
Size:
1.75 KB
Format:
Item-specific license agreed upon to submission
Description: