Abstract:

In this study, the value of accounting information in particular in Turkey was analyzed using the data of 53 companies that were regularly traded in Borsa Istanbul between 2009 and 2016. Four different panels have been tested using data analysis methods. The Ohlson (1995) price model concludes that the value of the book and net profits are related to the value. The effect of the non-material stable assets also shows the analysis results of the second model that is taken into consideration are not related to the value of the registered value formed on the basis of the material stable assets and that the non-material stable assets have a limited impact on the market values. The third model, which includes non-related non-material assets, provides the findings that non-balanced assets are related to high-level value. The net profits are the fourth model created with non-material assets and non-balance assets; in Turkey, non-material assets are more related to value than accounting figures.

Abstract:

This paper investigates the value relevance of accounting information in Turkey by using the data of 53 active firms listed and traded on Borsa Istanbul between 2009 and 2016. Four different models are tested by panel data analysis. Ohlson (1995) price model shows that book value and net income are value relevant. Results of the second model which consists the effect of reported intangibles separately indicates that book value creation based on tangibles is value irrelevant while reported intangibles has limited impact on market values. The third model where unreported intangibles are added provides evidence on the high level value relevance of undisclosed assets. The fourth model constituted by using net income, reported intangibles and unreported intangibles proves that intangibles are more value relevant than reported accounting numbers in Turkey. 

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