Main Article Content
Abstract
This paper investigates value relevance of accounting numbers of the firms listed at the Jakarta Stock Exchange (JSX) for the period of 1993-2001. This study reveals that combined value relevance of both book value and residual earnings in-creased steadily from 1993 until 2001, except for the crisis year in 1998. When in-vestigated separately, the value relevance of book value increased dramatically from 1993 to 2001, but decreased slightly in the crisis year 1998. On the other hand, the value relevance of residual earnings decreased significantly from 1993 to 1999 and increased to the highest level in 2000. Consistent with these findings, the incre-mental value relevance of book value increased with the highest level in 1997, whereas the incremental value relevance of residual earnings decreased from 1993 to the zero in 1996 until 2001.
Keywords: Value relevance, accounting numbers, and JSX.
Keywords: Value relevance, accounting numbers, and JSX.
Article Details
License
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).