Valuation of value relevance between parent and consolidated financial statements : Evidence in Vietnam

Abstract

Value relevance of financial information has been widely addressed in accounting research; however studies regarding value relevance between parent and consolidated financial reports are of limited in international literature and most of them are conducted in developed capital market such as: UK, France, German… This study, therefore, valuates the usefulness of information provided by two sets of financial report on the sample of 74 non-financial companies listed on Ho Chi Minh Stock Exchange over the period 2009-2013. This study employs panel data and three variables: earning, book value of equity and operating cash flow are included as predictor variables to explain the variation in stock price. The results lend support to the superior value relevance of consolidated account over group account