This study examines whether the adoption of International Financial Reporting Standards (IFRS*) has increased the value relevance of accounting information in one of the Gulf Co-operation Council (GCC) countries, Bahrain. It extends the literature on the attributes of financial reports prepared under IFRS through examining its value relevance. We used a sample of 40 listed companies in Bahrain Bourse (BHB) as one of the emerging markets with a total of 280 year-firm observations. The study employs the Ordinary Least Square (OLS) regression analysis. Two models of OLS regression (returns and price models) were employed. For the stock return model, findings of the study showed a slight difference in the value relevance of accounting information after the adoption of IFRS by listed companies in BHB. However, in the price earning model, the findings showed some improvement in the value relevance after the adaption of IFRS. |
