<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>The value relevance of financial reports has been the preoccupation of researchers and regulators during the last three decades. Therefore, this study is an attempt to reinvestigate the comparative value relevance of the main accounting figures (equity book value, earning, and cash flow) in two prominent economic and accounting models in the world, France and the UK. Using 115 French companies and 100 UK companies over the period 2011-2019, and relying on Ohlsonʼs model, the results indicated that equity book value and earnings are value-relevant in two countries, but cash flow has no value relevance. In France, the equity book value has low-value relevance versus a high-value relevance of earnings. However, in the UK, equity book value and earnings have close levels of value relevance. Although the differences between French and UK companies in terms of relative value relevance of equity book value and earnings, they have very close common value relevance.</p>
</abstract>

The value relevance of financial reports has been the preoccupation of researchers and regulators during the last three decades. Therefore, this study is an attempt to reinvestigate the comparative value relevance of the main accounting figures (equity book value, earning, and cash flow) in two prominent economic and accounting models in the world, France and the UK. Using 115 French companies and 100 UK companies over the period 2011-2019, and relying on Ohlsonʼs model, the results indicated that equity book value and earnings are value-relevant in two countries, but cash flow has no value relevance. In France, the equity book value has low-value relevance versus a high-value relevance of earnings. However, in the UK, equity book value and earnings have close levels of value relevance. Although the differences between French and UK companies in terms of relative value relevance of equity book value and earnings, they have very close common value relevance.

Comparative Value Relevance of Main Accounting Figures in France and the United Kingdom

Land Forces Academy Review

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The value relevance of financial reports has been the preoccupation of researchers and regulators during the last three decades. Therefore, this study is an...

Comparative Value Relevance of Main Accounting Figures in France and the United Kingdom

Published Online: Mar 12, 2022

Page range: 67 - 77

DOI: https://doi.org/10.2478/raft-2022-0010

Keywords
value relevance, equity book value, earnings, cash flows, equity market value

© 2022 Bilal Kimouche et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Comparative Value Relevance of Main Accounting Figures in France and the United Kingdom

Published Online: Mar 12, 2022

Page range: 67 - 77

DOI: https://doi.org/10.2478/raft-2022-0010

Keywordsvalue relevance, equity book value, earnings, cash flows, equity market value

© 2022 Bilal Kimouche et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
value relevance, equity book value, earnings, cash flows, equity market value