Studying and Investigating the Value Relevance of Interim Accounting Information- Evidence from Egyptian Listed Companies

The study aimed to investigate the relevance and usefulness of interim financial information for decision making which related to the market value of corporations. This study is differing from other literatures which focused on the value relevance of annual financial information. In particular determine whether the value relevance of interim information is differ from annual information based on sample of 218 observation during the period from 2013 to 2019. The relationship between the value relevance of interim book value of equity and net income and the market value of stocks is investigated in light of some control variables; firm size, audit firm size and the auditor`s opinion and conclusion. The study found that both the interim book value of equity and net income have significant effect on market value of companies but the book value can interpret the change of stocks` market price more than the income. Also the audit firm size has positive insignificant relationship with the value of companies in addition to negative insignificant relation between firm size and value of companies. Although the change in the relation between the auditor`s opinion of annual financial statement and the conclusion of interim financial statements from negative in the first quarter to positive in next quarters, it still insignificant. The results concluded also there wasn`t significant relation neither between separated and accumulated presentation of interim financial statement nor the value relevance of annual and interim financial statement.