How does leverage affect the value relevance? evidence from Turkey
Yükleniyor...
Dosyalar
Tarih
2020
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Routledge
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
High-levered firms have serious concerns related to avoiding covenant violations and meeting the needs of their creditors. Accounting information of those firms should be less value relevant for market participants. Based on a sample of Turkish listed firms over 2009–2018, we analyse whether the value relevance of accounting information is significantly lower for high-levered firms. For this purpose, we group observations with no net debt and divide the rest into quintiles based on leverage levels. We conclude that the value relevance of both earnings and book value of equity is lower for the high-levered quintile than the rest. Moreover, the value relevance of earnings is moderated more than the value relevance of book value of equity for the high-levered quintile. Last, book value of equity is more dominant in the valuation of the high-levered quintile than the valuation of the rest.
Açıklama
Anahtar Kelimeler
Accounting Information, Capital Structure, Leverage, Turkey, Value Relevance
Kaynak
Revista Espanola de Financiacion y Contabilidad
WoS Q Değeri
Q4
Scopus Q Değeri
N/A
Cilt
Sayı
Künye
Ertugrul, M. (2020). How does leverage affect the value relevance? Evidence from Turkey. Spanish Journal of Finance and Accounting/Revista Española de Financiación y Contabilidad, 1-22.
