VALUE RELEVANCE-EVIDENCE FROM FOOD INDUSTRY
DOI:
https://doi.org/10.5937/ekoPolj1803099SKeywords:
Value relevance, food industry, analytical indicatorsAbstract
The aim of the paper is to determine the correlation between the changes in the values of the selected analytical indicators, based on the financial statements and the change in the market value of companies, expressed through the value of the market value multipliers. The focus of research is on companies operating on the European markets within the food industry. The research methodology implies the use of regression analysis where the market multipliers of the selected enterprises will be set as dependent variables, and the analytical indicators are proposed as independent variables. The expected results should indicate the existence of value-relevant information in the financial statements of companies from food industry, which will serve all stakeholders for more efficient decision-making that is related to this industry sector. Data used in the research are acquired from European equity markets.
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References
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2. Amadeus (2016), data base. available at: https://amadeus.bvdinfo.com/version-2017928/home.serv?product=AmadeusNeo
3. An J., Bhojraj S., & Ng D. (2010). Country. Industry and Idiosyncratic Components in Valuation Ratios. Working Paper. Korea Institute for International Economic Policy. Korea; Cornell University and the Wharton School at the University of Pennsylvania, USA
4. Ball R., Brown P. (1968). An Empirical Evaluation of Accounting Income Numbers. Journal of Accounting Research 6, 1968, p. 159-178. Chicago, USA
5. Brief R., Zarowin P. (1999). The Value Relevance of Dividends, Book Value and Earnings. Working Paper, New York University
6. Cheng C.S.A., McNamara R. (2000). The Valuation Accuracy of the Price-Earnings and Price-Book Benchmark Valuation Methods, Review of Quantitative Finance and Accounting 15, 2000, 349-370.
7. Chang J. (1999). The decline in value relevance of earnings and book values. Working paper, University of Pennsylvania, 1999.
8. Collins D.W., Maydew E.L., Weiss I.S. (1997). Changes in the value-relevance of earnings and book values over the past forty years. Journal of Accounting and Economics 24, 1997.
9. Francis J., Schipper K. (1999). Have Financial Statements Lost Their Relevance? Journal of Accounting Research 37, 1999.
10. Frankel R., Lee C.M.C. (1998): Accounting valuation, market expectation, and cross sectional stock returns. Journal of Accounting and Economics 25. Canadian Center of Science and Education, 1998.
11. Nissim D. (2011). Relative Valuation of U.S. Insurance Companies. Review of Accounting Studies, Forthcoming, Columbia Business School Research Paper, 2011, No. 12-3, available at: http://www.columbia.edu/~dn75/Relative%20Valuation%20of%20U.S.%20Insurance%20Companies.pdf
12. Pervan I., Bartulović M., (2014). Value relevance of accounting information: evidence from South Eastern European countries. Economic Research-Ekonomska Istraživanja. Pula, Hrvatska 2014, Volume 27, Issue 1.181-190
13. Richter F., (2005). Mergers and Acquisitions: Investment analyse. Finanzierung und Prozessmanagement, Vahlen, Munich, Germany
14. Rodić J., Lakićević M., Vukelić G., Andrić M. (2011). Financial statement analysis. Proleter a.d., 2011, Bečej [In Serbian: Rodić J., Lakićević M., Vukelić G., Andrić M. (2011): Analiza fnansijskih izveštaja]
15. Saković D. (2018). Analytical indicators of the peer group companies as the determinant of market multipliers model for valuation of entities. Doctoral dissertation. Economic faculty of Subotica. Serbia 2018. [In Serbian: Saković D. (2018). Analitički pokazatelji homogne grupe entiteta kao determinanta modela tržišnih multiplikatora za vrednovanje preduzeća]
16. Schreiner A. (2007). Equity Valuation Using Multiples: An Empirical Investigation. Doctoral dissertation of the University of St. Gallen, 2007, Wiesbaden
17. Sibel K., (2013). The Impact of IFRS on the Value Relevance of Accounting Information: Evidence from Turkish Firms. International Journal of Economics and Finance, Canadian Center of Science and Education 2013, Vol. 5, No. 4. 71-80. Canada.
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Published
2018-09-23
How to Cite
Saković, D., & Ilić, M. (2018). VALUE RELEVANCE-EVIDENCE FROM FOOD INDUSTRY. Economics of Agriculture, 65(3), 1099–1110. https://doi.org/10.5937/ekoPolj1803099S
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Review articles
