The Value Relevance of Accounting Information on Stock Price: Empirical Evidence of Companies Listed on the Stock Exchange Thailand
Keywords:
Value Relevance, Accounting Information, Stock PriceAbstract
The purpose of this research was to study the value relevance of accounting decisions as measured by the book value per share (BVPS) and earnings per share (EPS) to stock prices (SP) and compare the incremental value relevance of companies listed on the Stock Exchange of Thailand. Data were collected for 5 years between 2017 and 2021 for 2,522 firm-year observations. The data were analyzed by statistical analysis using Pearson's Correlation Coefficient, Multiple Regression analysis and Incremental value relevance coefficient analysis. The results of the study found that Relevance to decision making using a combination of book value and earnings per share had a positive correlation with the change in stock prices at a significance level of .01, BVPS is a variable that affects the change in a stock's price more than EPS. For the incremental value relevance common, the coefficient of value relevance represents the efficiency of an equation that uses BVPS and EPS as a combination of variables that can best describe a stock's price. Therefore, it can be concluded that accounting information is relevant to investor decisions.
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