The Analysis of Value Relevance of Accounting Information in Stability and Crisis Periods: The Mediating and Moderating Variables of the Effect Earnings Management Practices. An Empirical Study on the Egyptian listed companies

Document Type : Original Article

Authors

1 Assistant Professor of Accounting Faculty of Commerce Zagazig University

2 Accounting Faculty of Commerce Zagazig University

Abstract

The various of capital market decision depend on the relevance of accounting information as the important standard of the quality of different decisions. large accounting literature investigate and analyze the value relevance of accounting information in different environments. The current research uses Ohlson (1995) model to investigate the value relevance of accounting information in Egyptian environment as the first objective. The second objective is to investigate whether value relevance varies in periods with different characteristics. In addition, the research investigates earnings management practices as one the researchers use (Hayes, 2017) to investigate information asymmetry and financial analysts behavior as mediating variable in the model condition on corporate governance, analysts coverage, and firm reputation. A sample over the period from 200-2019 with 1000 firm-year observation, is selected . the period is divided into four main periods. First, before financial crises; Second, after financial crises. The research finds that the significance of the variance of value relevance of accounting information over the different periods. Also, the earning management affect significantly on value relevance through financial analysts behavior in conditional on corporate governance. The effect of information asymmetry is insignificant finally, the interaction between firm reputation and earnings management is significant in crisis periods comparable to periods of stability.

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