THE VALUE RELEVANCE OF ACCOUNTING DATA ACCORDING TO IFRS AND US GAAP: THE CASE OF GERMANY

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Abstract

This paper compares the value relevance of IFRS, US GAAP and national GAAP in a specific institutional setting. Using a sample of all listed firms in Germany which have voluntarily adopted IFRS or US GAAP we apply three different valuation models as well as a return model in our analysis. Whereas under IFRS and Germany GAAP book value of equity is relatively more value relevant than net income, we find a different result for US GAAP. Additionally, the results of our study suggest that IFRS accounting produces more value relevant data than HGB and US GAAP. However, the differences in the value relevance of the accounting systems are lower than expected.

Keywords: IFRS, US GAAP, IAS, HGB, Value Relevance, Germany

How to cite this paper: Ernstberger, J. (2009). The value relevance of accounting data according to IFRS and us GAAP: The case of Germany. Corporate Ownership & Control, 6(3-1), 177-195. https://doi.org/10.22495/cocv6i3c1p2