The effect of comparability of financial statements on value relevance of book value and earnings in light of the modifying role of financial reporting opacity - an applied study

The research aims to study the effect of the comparability of financial statements on the value relevance of book value and earnings in light of the modifying role of opacity in financial reports. The researcher carried out an applied study on a sample of companies listed on the Egyptian Stock Exchange to test the relationships between the variables. The study relied on the multiple regression method for a number of (50) companies in the period from (2017-2022) for the purpose of testing three hypotheses that reflect the relationship between the independent variable, which is (comparability of financial statements), the modifying variable (opacity of financial reports), and the variable The dependent value (value relevance to book value and earnings), and the statistical analysis program SPSS was used to perform statistical tests. The study found that there is a negative and significant relationship between the comparability of financial statements (COMP) and the appropriate value of book value and earnings (VR). There is also a negative, non-significant relationship between the opacity of financial reports (OPACITY) and the appropriate value of book value and profits (VR). It was found that there is a positive and significant relationship between the interactive variable (opacity of financial reports * comparability of financial statements) and the appropriate value of book value and earnings

Keywords: comparability of financial statements, value relevance of book value and earnings, opacity of financial reports.