Comparing the value relevance of earnings and book value in IFRS and GAAP standards

Lionel Escaffre (1) , Réda Sefsaf (1)

1 GRANEM - Groupe de Recherche Angevin en Economie et Management

The aim of this paper is to present a comparative analysis of the value relevance of the book value and earnings on a sample of companies belonging to the financial sector, made up largely of banks. The sample is taken from several European markets in IFRS, namely the Benelux countries, France, Spain, the United Kingdom and the US market in US GAAP. We will aim to find out under what standard applied to a given financial market, the relation between accounting numbers (earnings and equity) and the stock market returns is the most significant The results of the statistical tests show a superiority of the value relevance of the European markets compared to the American market.

Mots clés: US-GAAP; IFRS; Banks; Stock market; Price; Association study

Domaines: Gestion et management

Lionel Escaffre, Réda Sefsaf. Comparing the value relevance of earnings and book value in IFRS and GAAP standards. Bankers Markets & Investors : an academic & professional review, 2011, pp.4-18. ⟨hal-00769389⟩