ATJ Asian Tax Journal

Asian Tax Journal

Print ISSN 1738-3323 Online ISSN 2733-9270

The Effects of Headquarters’Location on the Value Relevance of Accounting Information

  • Oungrak Oh Department of Accounting, Soongsil University

Asian Tax Journal Vol. 17 No. 1 (2016), pp. 161-180

Abstract

To verify how firm location affect the value relevance of accounting information, this study analyzed whether the differences in relation to the value of the accounting information of Seoul metropolitan area firm, metropolitan city firm and non－metropolitan city firm. This study analyzes using a sample of 6,056 companies/year, focusing on the listed companies from 2011 until 2014. The results are as follows. First, it analyzes the differences in the value relevance of the accounting information of Seoul metropolitan area firm and non－Seoul metropolitan area firm. As a result, the value relevance of the accounting information of non－Seoul metropolitan area firm is higher than the value relevance of the accounting information of Seoul metropolitan area firm. Second, it analyzes the differences in the value relevance of the accounting information of Seoul metropolitan area firm, metropolitan city firm and non－metropolitan city firm. As a result, the value relevance of the accounting information of non－metropolitan city firm is higher than the value relevance of the accounting information of Seoul metropolitan area firm and metropolitan city firm. Because of showing the differences in the value relevance of the accounting information of Seoul metropolitan area firm, metropolitan city firm and non－metropolitan city firm, the significance of this study is show that the information of headquarters’ location affect the value relevance of accounting information.

Keywords

  • Headquarters’ location
  • non－Seoul metropolitan area firm

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Asian Tax Journal

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