Article2009

Value Relevance of Inflation-adjusted Equity and Income

Berna Kirkulak-Uludag · Çağnur Kaytmaz Balsarı

33 citations0/0 files storedThe International Journal of Accounting

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Financial Reporting and Valuation Research Auditing, Earnings Management, Governance Accounting Theory and Financial Reporting

Abstract

This paper investigates the role incremental information content of inflation-adjusted data plays in explaining the market value of equity and stock returns on the Istanbul Stock Exchange (ISE). We show the effect of inflation accounting application on basic financial ratios, and we test the value relevance of inflation-adjusted and historical cost-based book value and earnings. The findings show that inflation adjustment affects financial ratios significantly, which may create different risk assessments for the selected firms. Furthermore, the results indicate that both inflation-adjusted and historical cost-based earnings and book values are significantly value relevant. The two sets of data are not to be used as substitutes, but, rather, they are complementary. For this reason, inflation-adjusted data should be required as supplementary data to the historical cost information rather than in place of historical cost data.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 33 citations exist upstream.

References

1995Earnings, Book Values, and Dividends in Equity Valuation*1991Earnings Asan Explanatory Variable for Returns 2007The Value Relevance of Accounting Income Reported by DAX‐30 German Companies 1982The incremental information content of replacement cost earnings 2004A comparison of value relevance of accounting information in different segments of the Chinese stock market 1985Market Association Tests and FASB Statement No. 33 Disclosures: A Reexamination 1980The adjustment of security returns to the disclosure of replacement cost accounting information 2000Inflation Accounting and 20-F Disclosures: Evidence from Mexico

Cited by

2020Integrated capitals reporting and companies' sustainable value: evidence from the Asian continent 2018Do Macro-economic Crises Determine Accounting Value Relevance?2019A Comparative Analysis of Inflation-Adjusted and Historical Cost Accounting Information: Implications for the Value Relevance of Corporate Reports 2018Effect of IFRS on Value Relevance of Accounting Information: Evidence from Quoted Manufacturing Firms in Nigeria

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.