Journal Press India^®

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The research analyzes the relevance of accounting information in determining share price in listed NBFCs and the impact of implementing Ind AS on that relevance, a converged form of IFRS. The research employs the Ohlson model (1995) on data collected from 2014-15 to 2022-23, with MPS being the market value and EPS and BVPS being accounting variables. These variables are considered a proxy for the income statement and balance sheet, respectively. The panel data comprises 4848 firm-year observations for 202 NBFCs BSE listed. The findings reveal that the availability value relevance in listed NBFCs and further is also higher in the IGAAP period than in the Ind AS period. However, both variables significantly influence MPS in all periods. Still, the marginal impact of EPS is higher in all other periods except the pre-Ind AS period, which shows that NBFC’s current performance more influences share price than BVPS.

Keywords

Value relevance of accounting information; IFRS; Ind AS; NBFCs; Ohlson price model; Value relevance

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