Measurement Bases and Accounting Standards: An Empirical Research with Emphasis on Stock Pricing in the Market
DOI:
https://doi.org/10.5380/rcc.v15i2.88171Keywords:
Measurement Bases. Accounting Standards. Value Relevance. Ohlson Model.Abstract
The research deals with measurement bases and their relationship with accounting standards, with emphasis on share pricing, especially on the market reaction to the disclosure of financial information by companies. The objective is to verify if there is a relationship between the accounting measurement and the value of the shares. This is important as the classification and measurement of assets gains relevance and visibility in the market. The model adopted in the research, part of the panel data method, and the regressions were tested by the method of ordinary least squares. In the econometric model, the value of shares is used as the dependent variable, inspired by the model by Ohlson (1995). The research results indicate that the market is connected with accounting, based on the association of the measurement bases with the share price of companies traded on the São Paulo Stock Exchange in the period from 2014 to 2019. The measurement bases influence the stock market value, and the market uses information from financial statements in stock pricing. It is concluded that assets measured at cost, present value and fair value explain part of the value and influence the pricing of shares. In addition, it appears that the present value is more relevant than the historical cost for the pricing of shares. The research findings point to a relationship between financial statements and the market, suggesting the value relevance of accounting for estimating the value of shares and highlighting the relationship between accounting and the market.
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