The value relevance of financial statements : Evidence from Vietnam
Abstract
Value relevance of financial statement has been in research for academics
over the last four decades. While there has been a number of studies on the value
relevance in the developed countries such as the US and UK, but very few empirical
study was conducted in developing markets. Therefore, the aim of this study is to
examine the value relevance of financial reporting and its impact on stock price. In
order to achieve this goal, a model that includes six specific financial ratios has been
developed. The sample data of 127 non-financial companies listed on HOSE, is
collected primarily from their financial statements and other credible sources in the time
fames spans of 2008 - 2013. The results reveal that inventories to sales ratio, working
capital to total assets ratio have a negative impact on stock return, while the ratio of net
profit to total assets and net profit to sales ratio affect stock price movement positively