Abstract

This paper investigates the impact of firm size and debt ratio on the value relevance of accounting earnings and book value in the firms listed in Korea Securities Dealer’s Automated Quotations(KOSDAQ) markets.An simple liner regression and piece-wise linear regression are applied to across subsamples in order to investigate the impact of firm size and debt ratio between equity value and accounting earnings/book value. Samples are divided into 2 or 3 equal groups according to the size of asset value and debt ratio. The empirical results show the evidence that the size of assets vale and debt ratio have an negative(-) influence on the value relevance of accounting earnings and book value. This also suggests grouping criterion can contribute to finding value impact of firm size and debt ratio.<Key words> Firm Size, Debt Ratio, Accounting Income, Book Value, Valuation, Value Relevance

Keywords

• Firm Size
• Debt Ratio
• Accounting Income
• Book Value
• Valuation
• Value Relevance

Related Articles

• An empirical analysis of the relative relation of accounting earning and book value in KOSDAQ markets

  Kwon, Gee-Jung , Choi, Kang-Deuk

  6(3) 29-54

  Abstract Full Text for PDF

• The Effect of Derivatives on Accounting Value Relevance

  Kim, Jeong Ok , Yoojin Shin

  20(2) 39-69

  Abstract Full Text for PDF

• The Effects of Accruals Quality on the Value Relevance of Earnings and Equity Value

  Lee, Se－Young

  15(1) 251-277

  Abstract Full Text for PDF

• The Effect of the Debt Dependance on the Association between Earnings and Cost of Debt in Private Firms

  Park, Jong-Il

  14(2) 47-80

  Abstract Full Text for PDF

• A Study on the Change in Value－Relevance of Accounting Information before and after 1997 Financial Crisis

  Lee, Se－Young

  10(1) 35-75

  Abstract Full Text for PDF