Abstract

Recently, many companies voluntarily hold Investor Relations(IR) to provide information regarding their results of operations such as financial performance, and IR as voluntary disclosures lead to reductions in information asymmetry between companies and investors. Therefore,investors have more confidence in business information which was disclosured by companies holding IR regularly, and these companies' accounting information could have similar reliability from investors. In this paper, we analyze the effect of holding IR on value relevance of accounting information by Ohlson model(Ohlson 1995) using 4,286 firm－year samples from 2002to 2009. The results of the study indicated that value relevance of the firms that hold IR over one time in year is positively improved compared with the firms without IR. This result provides theoretical supportive evidence for IR as a system to improve the relevance of accounting information.

Keywords

• Investor Relations(IR)
• Information asymmetry
• Confidence of accounting information
• Value relevance

Related Articles

• The Relation between Auditor Change and Foreign Equity

  Hyun Uk Jung , Lee Hyun-Ju , Mun, Tae－Hyoung

  24(1) 97-128

  Abstract Full Text for PDF

• The Effect of Substantial Investigation System of Delisting on Reliability of Accounting Information

  Park, Hong Jo , Hyun Mi, Ji

  11(4) 253-274

  Abstract Full Text for PDF

• An Empirical Study on the Effects of Accounting Quality and Corporate Governance on the Cost of Equity Capital

  Moon, Jong-Yeol , Kim Moonchul

  10(3) 33-72

  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

• The Effects of the Application of the IFRS 9 Expected Credit Loss Model：Focusing on Abnormal Loan Loss Provisions and Value Relevance of Bank

  Seung Uk Choi

  26(6) 43-86

  Abstract Full Text for PDF