Using 28,785 observations of 813 banking institutions in 38 countries during the 1993-2004 period, this study investigates among others, the role of transparency, accounting standards, legal, financing, corporate, and banking environments at the country level and size, risk, and organization form at the bank-specific level affecting the extent of value relevance. The evidence indicates that at the macro-level, the extent of mandated accounting disclosure, differences in accounting measurement practices, and type of legal environment, were the most influencing factors affecting the extent of value relevance of earnings and book values. At the bank-level, the organizational form and risk had the most impact.
All Science Journal Classification (ASJC) codes
- Business, Management and Accounting(all)
- Book values
- Equity valuation
- Value relevance