International Journal of Business and Management; Vol. 13, No.

4; 2018
ISSN 1833-3850 E-ISSN 1833-8119
Published by Canadian Center of Science and Education

The Impact of IFRS Adoption on Keywords:book value, earnings, firm size, IFRSs,
the Value Relevance of insurance firms, profitability, value relevance
Accounting 1. Introduction
Information: Evidence Questions regarding the relevancy and reliability of
accounting information continue to persist. Accounting
from the Insurance information is considered to be more relevant when it
Sector creates a difference in the decisions made by users and to
be more reliable when it is materially accurate and
Ali A. faithfully represents the phenomena that it claims to
represent.
Alnodel1 The relevancy of accounting information has been
1
Accounting Department, Qassim University, Al-Mulida, recently boosted by the widespread adoption of
International
Kingdom of Saudi Arabia Financial Reporting Standards (IFRS). One of the most
Correspondence: Ali A. Alnodel, P.O. Box 4667, common assertions regarding IFRS is that this set of
Buraidah 51412 Qassim, Kingdom of Saudi Arabia. E- accounting standards is market oriented (Tarca, 2012) and
fosters fair value principles. Therefore, the adoption of
mail: IFRS can cause a significant impact on the value relevance
nodl@qu.edu.sa of accounting information (Bartov, Goldberg, & Kim,
2005). This is especially important for insurance
Received: January 29, 2018 Accepted: companies in which most of their assets and liabilities are
close
to their fair value (Nissim, 2010). Previous studies have
February 20, 2018 Online Published: March 18, produced mixed results with respect to the impact of the
adoption of IFRS. This may be due to the environment and
2018 structure of the industry, market, and economy, which
includes the type of the industry, legal environment,
doi:10.5539/ijbm.v13n4p138 URL: advancement of the business, education, or the
https://doi.org/10.5539/ijbm.v13n4p138 development
of the economy. This study extends these efforts through
an examination of the value relevance of accounting
Abstract information before and after the mandatory adoption of
This paper aims to investigate whether the adoption IFRS by Saudi insurance companies.
of International Financial Reporting Standards (IFRS) The study employs the return and price models to
increases the value relevance of accounting information estimate the value relevance of earnings and equity
for insurance firms listed in the Saudi stock market. The information with their relationship to share prices. The
study employs the Ohlson model (1995) and the Easton– Ohlson model (1995) and the Easton–Harris valuation
Harris valuation model (1991) in order to examine the model (1991) have been utilized to examine the
association among stock market value and book value association among stock market values, book value,
and earnings per share. The data was collected for 21 and
insurance companies listed in the Saudi stock market earnings per share. The data covers pre-IFRS and post-
during the period 2007–2014, which covered pre- / IFRS periods during 2007–2014. The study sample
post-IFRS periods. The results reveal that the book value consists of 21 insurance companies listed in Saudi
of equity becomes less value relevant whereas earnings Arabia’s stock market.
are more value relevant. Further analysis suggests This study contributes to the literature in the following
that the increase in the value relevance of accounting
ways. First, it expands the previous research by focusing
information is positively influenced by companies’
attributes, especially profitability and size rather than on the insurance industry, which is more vulnerable
IFRS to the accounting evaluation model. The study also
adoption. These results highlight the importance of highlights the manner in which investment decisions are
institutional factors in the determination of the value made in one of the emerging economies that has not
relevance of accounting information in emerging received sufficient research efforts. The results of this
stock markets. These results also expand IFRS study can also help in the evaluation of the consequences
research of the adoption of IFRS in the Saudi stock market, as the
through a consideration of the insurance industry, which country has recently adopted a plan to necessitate the
is more vulnerable to the accounting evaluation model. adoption of IFRS by all other industries.
 138

International Journal of Business and 13, No. 4; 2018

ijbm.ccsenet.org Management Vol.
The structure of the the US versus the non- there should and Thornmock (2012) that accounting
paper will be as US GAAP accounting be found that information is valued
follows. The following
section presents the measures. Then, the consistency information content higher in the pre- period
literature survey; section literature has been in the increased in countries than in the post-IFRS
3 extensively concerned institutional where IFRS was period. Kousenidis,
discusses the research with the changes in factors rather mandatorily adopted in Ladas,
methodology; section 4 accounting standards and than in comparison with and Negakis (2010)
explains the empirical the value relevance of accounting countries investigated the impact
results; and the last the information standards. that adopted domestic of IFRS on Greek
section presents the produced therein. Halonen, standards. Further, they companies and reported
conclusion and some From the perspective of Pavlovic, suggested that the that IFRS has a negative
policy suggestions. and Persson information content is impact on the
accounting standards, the (2013) dependent on the degree incremental information
2. Literature Review
adoption of IFRS is examined of foreign investment content of book value of
The literature pertaining
currently attracting the value and the minimization of equity for stock prices
to the value relevance of relevance of the reporting lag. and a positive influence
extensive research. financial Clarkson, Hanna, on the earnings’
accounting information For example, Bartov et al.
reporting Richardson, and incremental content in
is relatively extensive (2005) studied the listed and its Thompson the post-IFRS period.
and has been companies in Frankfurt, impact on (2011) investigated the Chen, Chen, and Su
approached from NYSE, AMEX, stock prices impact of the adoption of (2001) analyzed the
different angles. The NASDAQ, and LSE, in Sweden IFRS for Europe and adoption
study conducted by covering the period after the Australia with respect to in the Chinese stock
Ball and Brown (1968) 1998-2000. Their results introduction the relevance of exchange market,
is one of the earliest revealed a high degree of the new book value and earnings Benayed and Abaoud
comprehensive study of value relevance IFRS in for equity valuation. (2006) examined the
investigating the among accounting 2005. In They utilized the adoption of IFRS in the
association between numbers under IFRS order to product of EPS and Tunisian stock
unexpected earning and versus the non-IFRS. measure the BVPS. Using the linear exchange, and Shamki
abnormal stock returns. Barth, Landsman, and value pricing model, their and Rahman (2012)
Thereafter, a significant Lang (2008), covering relevance, coefficient was studied the value
body of research has the period 1990–2003 they statistically different relevance of earnings
been conducted in the for many countries, collected from zero and the sign and book
context of different arrived at the same accounting was negative. Callao, value of equity for the
markets (e.g., Amir, findings. Jeanjean and data and Jarne, and Jordanian market.
Harris, &Venuti, 1993; Stolowy (2008) stock prices La´ınez (2007) attempted This extensive research
Collins, Maydew, & examined the impact of between to find the difference
Weiss, 1997; the 2007-2010 between IFRS and local concerning the adoption
Holthausena & Watts, adoption of IFRS on and applied standards in Spain. They of IFRS, however, does
2001; Brimble & earning quality. They the Ohlson’s observed that
selected the UK, France, model. It not provide any fixed
Hodgson, 2007; employing IFRS in Spain
Soderstrom & Sun, and Australia as first- was increased the difference results. For
2007). Holthausena and time IFRS adopters. concluded between the book value example, Shamki and
Watts (2001) classified They observed that after that value and market value. Rahman (2012)
the studies relating to the adoption of IFRS, the relevance Consequently, they examined the behavior
value relevance into prevalence of earning increased argued that there was no of earning and book
three sub-classes: management did not when improvement in value value in relation to
‘relative association reduce in the UK measured by relevance. value
studies’, ‘incremental and Australian book value In the context of relevance in Jordan.
association studies’, and companies, whereas it and earnings They discovered that in
was enhanced in the per share and emerging economies, a the price model, on an
‘marginal information
content studies’. French companies. In accounting number of studies have individual basis,
their opinion, there are data has a relevance increased, but
From the changes and discussed the adoption of
a high ratio of at
settings of accounting number of institutional variations in IFRS and its impact. the aggregate level,
standards point, Amir et and management the stock For example, Klimczak book value became
variables that play a price. (2011) examined the irrelevant. Conversely,
al. (1993) were the significant role in setting Landsman, impact of mandatory in the return model,
pioneers who discussed the reporting features. Maydewa, adoption of IFRS in they found that earnings
the value relevance for They emphasized that Poland. He discovered were more relevant at
individual as well as the aggregate level, whereas the book value became less relevant.

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International Journal Manageme Vol. 13, No. 4; 2018

ijbm.ccsenet.org of Business and nt
They further on accounting that ments in order contexts. He harmoni market the Saudi
argued that information in have to apply IFRS observed a zation assessment of environmental
earnings are
more relevant the Saudi adopted in the Saudi significant of future cash constituents,
than book market. For IFRS. context. difference in the accounti flows. which implies
value. example, Alnodel Alnodel (2016) value relevance ng However, their that the low
Similarly, Nurunnabi (2015) examined the of accounting standard study reported demand for
Benayed and (2017) investig effect of the numbers s due to that the accounting
Abaoud (2006)
investigated the ated the adoption of between the two their publication of information and
examined the
difference possible IFRS on the countries due to role in accounting the
behavior of the
between Saudi impact integration of the differences informat earnings caused weak
Tunisian stock
local accounting of the capital market in their ion individual monitoring
market and
standards and adoptionin the Gulf institutional dissemi investors to system are
concluded that
IFRS and of IFRS Cooperation factors rather nation. revise their important in
corporate value
reported some on Council (GCC) than in their Al- security determining the
is dependent
differences, market countries. He accounting holdings in casereporting
upon their
most of which efficienc reported no standards. He Sehali the firms process in the
future
related to the y in the significant argued that and reported profit. Saudi context.
performance,
environment of Saudi impact of the when there Spear In terms of Barrak (2011)
which is highly
the Saudi stock adoption of are similarities timeliness of
correlated with (2004) accounting investigated
market. market IFRS on the in terms of
the accounting
Alkhatani and integration of environmental empiricaearnings, their whether the
information.
(2012) studied reported the GCC stock factors, lly study reported establishment
Chen et al.
the relevance of no markets. differences in an association
(2001), while examine between of Saudi
IFRS in the impact Form a general accounting
discussing the
Saudi of the standards will d the earnings and Organization of
Chinese stock
context. He IFRS perspective not result in a decision security returns, Certified Public
market,
further reported adoptionconcerning the significant which suggests
included the relevanc that increasing Accountants
an on value relevance difference in the
book value of (SOCPA)
appropriateness market value relevance e and the
equity per share of accounting
of IFRS in the efficien of accounting timeline measurement resulted in
as a balance financial
Saudi context cy. information, information. interval
sheet parameter ss of statement
and asserted the Almotai there are also With respect to significantly
in
importance of ry and earning accounti improves this information
addition to some being more
certain changes Stainban conservatism, ng association.
accounting studies that value relevant
to the real k he They further
earnings. have earnings over time. The
practices. (2014) found that argued that
In the Saudi Almotairy and discusse investigated the institutional in there is low sample of the
Alsalman d the value relevance factors Saudi incentive for study covered a
context, a
(2011) explored educatio of accounting influence Arabia, managers in period from
number of information in covering 1993–2009 for
the changes nal attitude toward Saudi
studies discuss facing the require the Saudi earnings the companies in 97 firms with a
context (e.g., period total number of
the adoption of adoption of ments conservatism, the
IFRS in Saudi. for the Alsalman, which suggests between incorporation 997
IFRS by Saudi
Alsuhaibani adoption 2003; Al-Sehali the importance 1995 of economic observations.
companies. (2012) focused of & Spear, 2004; of institutional and loss on a The study
Barrak, 2011). 1999. reported
However, most on IFRS. factors in timely basis
telecommunicati They For example, determining They into accounting that in the case
of Alsalman reported of equity
on business in reported earnings earnings.
these studies
order to explore a (2003) conservatism. no Therefore, they valuation, the
have
the likely effect number investigated the Accordingly, significa concluded that book value was
concentrated on institutional nt found
of of the study positive and
non-financial factors that impact significant in
the adoption of suggesti concluded that negative
sectors and
IFRS. He ons to influenced institutional of the earnings might the price
reported
expected improve value relevance factors could publicati have differential regressions for
unsettled
similar impacts the of accounting prevent the on of implications for the whole
results
as seen in educatio information in effective accounti the timeliness period while
concerning the
other nal the Saudi accomplishment ng of accounting earning levels
direct Arabia and earnings and changes
environments require of international earnings and
impact of IFRS Kuwait on the were not
significantly the years. He earnings relevant in firms. Further, the the accounting relevance but
related to stock also are not equity valuation Barrak (2011) Saudi information has mostly in the
returns for all reported that value- for loss-making argued that in context a value early period
of his sample.

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ijbm.ccsenet.o International of Management 2018
3. la, 2013). (2001 -based known as levels nt of the annual price the value of equity per
Research ) studies ‘accounting and accounting a firm’s
Methodolo For the
gy emph inspect recognition chang variables earnings model equity is share of
empirical asized accounting lag’ and e in between the per share; , this dependent firm j at
3.1 Model analysis, that figures. ‘transitory earnin pre- and Pjt-1: stock study on the book year t;
Accounting two models price Ota (2001) earnings’. gs; post-IFRS value and
and Ota (2001) both periods. In price at the uses earnings. EPSjt:
information have been reviewed
return recommend were this study, beginning Feltha This model reported
will prove selected in appro some of the ed that deflat the return of last m and can fiscal year
to be more this study: aches theories and researchers ed by model is be utilized
relevant have should use the given in the year’s Ohlso to evaluate accounting
the return their evidence both stock following annual n’s the overall earnings per
when it model specif associated models, price manner: report (1995 value of share of
makes a (Easton- ic with the and in this at the RET equity,
value way, they begin announcem ) earnings, firm j;
difference Harris value
when can avoid ning ent month; price and stock whereas
1

in the valuation some relevance ambiguous of last (1)

∆ET = (Ejt- model prices pre- ujtis
decisions model) and one studies in conclusions year’s Where: and post-
the price desire . In this annua Ejt-1)/Pjt-1 as a IFRS stochastic
made by accounting. RET jt:
model study, both l Whereas, basic periods. A term.
users and (Ohlson ands to He adds
estim models report annual
more ejtis the model modified 3.2
Feltham- ate that the have been annou Feltham-
reliable return
Ohlson
when it is price the theoretical utilized, as ncem stochastic to Ohlson’s Hypotheses
foundation suggested ent (including 1
term; α1 is exami (1995) The basic
materially model). param
eters of both by Ota month cash price model
accurate a proxy for ne the objective of
and
Gjerde, for return and (2001). . dividends) the is presented
Knivsflå, price value IFRS is to
in the
faithfully and Sættem value models are The Easton The of firm j, releva
releva Easto statistical manner provide
represents (2011) the same. and Harris n and measured nce of
nce. relationship accou given quality
the stated that However, valuation Harris below:
phenomena share price Accor sometimes three between the nting financial
that it ding Model valuat MV
or share the months infor
to ion stock price information
claims to return results are (1991), matio (2)
Easto model after the and book n. The to users
represent. describes
The degree the n and not generally (1991 fiscal year
values of
Where:
Ohlso regarding
of Som consistent, known as ) has equity per n’s MVjt:
behavior of mers which end; financial
association investors in been share, and price market
remains return EPSjt:
between (2003 emplo α2 measures model statements.
reflecting unexplainedmodel, value per
firm value the extent ), the . It is his yed earnings the has It
and price- describes to statistical been share of
to which based opinion that per share, is assumed
accounting they trust evalu relationship widel firm j at the that value
studie issues the ate measured between
numbers is the y
s concerned relationship the
three end of the relevance of
a direct accounting exami with the stock prices used both
between annua
check of information price model months and across annual earnings
the validity and the ne stock l earnings
are stated the report and book
and financ returns and variati after the per literat
financial ial as ‘scale accounting ons
fiscal year share announcem values of
reliability statements. ure. equity will
of the state effects’ and earnings. in the (Easton ent month;
The increase
Barth, ments those Stock infor end;
accounting Beaver,
where relating to returns are matio Ejt-Ejt-1:
1999). model BVjt: book after the
information and the return For the states implementa
value of
(Chandrapa Landsman as the model are dependent n change of that tion
return on earning conte

141

et.org al al of and nt 13, No. 4;

ijbm.ccsen Internation Journ Business Manageme Vol. 2018
of IFRS. Keeping that in mind, the follo wing hypothes es have been form ulated:
Hypothes (1995) have d: of IFRS. stud way: 3.3 Data of A and figures com 2010 of the
impa Hypothes Collins y, Hypothes the Tadawul) pani (post- variables
is 1: and ct on the The data has also reported es IFRS) used in
Accounti Collins valu is 2: et al. hypo is 3: dataset with been under have has been the
ng et al. e Positive (1997) thesi Firm utilized the carried the local man performe empirical
relev vs. observed s size has in this offic out. The dato d. The analysis.
informati (1997) ance has ial data accountinrily study
on is applied of negative that the been an study has web covers g adop sample Table 1.
more the acco earnings size of form impact been site pre- and standards ted consists
unti has an the firm ulate on the of post- IFR of 21
value return ng d drawn stoc IFRS to the S in insurance Descripti
relevant and the infor impact also with value from k adoption figures 2009 compani
in the price mati on value influence refer relevance Gulfbase,mar periods reported . es listed
on. relevance s the ence of ket during under Ther in the ve
post- models Acc to which auth 2007- IFRS, theefor Saudi
IFRS respectiv ordi of value the accounti provides oriti 2014. data for e, a Arabian statistics
period ely and ngly,accounti relevance subj ng data for es Since theboth com stock
the ng of ect informati stock (Cap periods paris market. MV RE
than in conclude next of ital study have on Table
hypo informati accountinthe on
BV
the pre- d that market inMar attempts been of 1
IFRS positive thesi on, g stud regardles Saudi ket to collected. 2008presents Ejt-Ejt-1 ∆

period. and s has regardles informati y in s of the Arabia. Auth In Saudi (pre- the EPS/Pjt-1
negative been s of the on. In the adoption A ority compare Arabia, IFR descripti (Entire
Hayn earnings form adoption this follo of IFRS. recheck – the insurance S) ve sample):
ulate wing CM with statistics
Mean Minimum 31.5 161.1 577 18 877.5 –59 11 2671.6 298 970.6 100 551.3 0.0 785 –5.9 410 186.754 – 1 2. 2
Median 499 2 360.50 200 000.0 0.1 100 71.285 7
Std. Dev. 8.7 358 0935. 000.0 100 4 3– 0 0
25.5 .
Maximum 560 116.0 1 000 000.0 7.5 300 18 297.710
20.0 570 0 251 1.7 21 0 –
614

Pre-IFRS
(2008)
17.4 349 13 221 764.7 –0.8 512 –1 –35 –0.0483
Mean 129.4 200 000.0
12.6 828 –0.9 000 952.4 417.47 –0.0495
Median 7 89 –10
50.5 379 800 000.0 0.6 700 0.0382
–14 –
Maximum 098.00
9.0 366 100 000.0 –2.5 100 –0.1425
787.0 472.2
Minimum 23 721.00
10.2 506 181 115.8 0.8 543 0.0491
0 55
Std. Dev. –457
67 2
Post- 24.1 008 285 500.0 0.4 480 593.00 0.0 185
238.0 000.4
IFRS 109
18.9 718 0 200 000.0 0.4 350 62 0.0 193
(2010) 665.50
52.4 500 –59 1 000 4.8 500 –26 0.1 075
Mean 8.7 358 207.0 000.0 –1.1 400 099.9
20 068.40
–0.0 595
Median 12.3 970 100 000.0 1.3 997 1 0.0 471
0
Maximum 8 902.500
26 236 898.3 6
Minimum 18
835.2 280.9
Std. Dev. 8540.00
2 31
–7 013.00
44 328.77
42 689.9

595.6 05
6 378.4
566.5 50
484 3
912.0 980.2
–21 38
043.0 –
117 546.3
866.0 70
1
167.9
98
Notes. consists listed Saudi with 136 ns period variables’ s are follows. the stock firm time t, three a o ae a oR
The of 21 in Stock firm year for 2007–
sample firms the Markets observatiothe 2014. Thedefinition as MV is price of i at measured months a rf m T
o h
142

ijbm.cc sen et.org Internation al Journal of Busine ss and Ma nagement V

within o
Oh iods period we compavalue eta ways capital +β1
the BVjt
lso for , ll nies. releva close marke +β2
price ges: tio to
and n’s compawhere as In nt t and EPS
return mo nies as it in than n their the jt+uj
model Empir del where is the generathe is fair lack
s for (19 the insign ret l, the chang value of
Saudi 95) chang ificant urn regres e in tha (Nissi legal
Arabi ical
a, an e in in the mo earnin t m, enforc
consid d IFRS post- del sion gs. the 2010), ement
ering Analy the has IFRS , asresults These or s.
both res taken period obsof the results ins due
the ult place. in the erv suppo ura to the Table
pre- two rt the
and sis s It can price ed ncelegal
post- The of be model fro model findin enforc 2.
IFRS the . In m s gs of ind ement
period results Ea observthe the Callao ust in the
s and sto return val indica et al. Price
consid of the n
ed ry countr
model ues te (2007) y that
ering regres an from , it is of , ma render and
the sion d Table signifi R2. that which y s it
compa Ha 2 that cant Fol the report be difficu return
nies’ estima rris in lo accou ed lt to
attribu tions mo the both wi that les realize
tes. are nting
del value of the ng after s the regres
These (19 2 period the infor the aff chang
are depict 91) of R s. Ea matio adopti e. sion
descri ed in for decrea Accor sto ect Daske
n on of
bed in
Table the sed dingly n IFRS, ed , Hail, model
the given there
wh from , the an Leuz,
follow 2. In by
ole value d in the was and
ing cross- 0.381 the Verdi s for
per releva Ha financ no
subsec
sectio iod in the nce rris ial impro IF (2008)
tions:
n (20 pre- of (19 statem vemen argue the
RS
07 accou 91) ents is t in d that
4.1 regres – IFRS nting int not the ad in
chang
sions, 20 adopti infor erp value releva opt develo
14) on matio ret releva nce ping
Retur the ion
an n for ati nt for of countr e in
adjust d period Saudi on, the accou ow ies,
n and ed for to insura Hy invest nting ing there accou
2 the aroun nce pot ors in infor may
R has to
pre d compahes the matio be nting
Price been - 0.002 nies is Saudi n due the difficu
used
IF in the has a 1 stock to the typ lties
as the standa
RS post- down is marke gap e in
Model measu
(20 IFRS ward par t. betwe of realizi
re of
08) period move tial Nonet en ass ng the rds
value
s for releva an . ment ly heless book ets outco
d Earninand is rej , for and an mes Model
nce. the
gs per falling ect invest marke d of the 1. Price
Accou Table posshare in the ed ors, t lia IFRS Model
2 t- is post- for the value. bili adopti
presen IF (Depend
signifi IFRS Sa earnin One ties on
nting ts the RS tha due ent
cant period udi g per
results (20 possib t
in the in ins share to the Variable
of the
Chan Feltha 10) pre- price ura is le are nature
per IFRS as ncemore interpral of the MVjt):
m and MVjt=β0
t
Pre-IFRS(2008)
Post-IFRS (2010) 200 7-2014 (Entire sam ple)

BV 0.00 000 195 –0.00 266 –0.00 293 EP S – 23. 59** 350.7 3 0
t
Pre-IFRS
Pos t- IFRS (2010) 200 7-2014 (Entire sample)
(2008)

EPS/Pj firm
t-1 re ity of
353 year and acco
253.6* observ po size untin
**
1 137 ations rte (refe g
069.6* for the infor
** d r to
1 076 period Hayn mati
457.3* 2007– th , on,
**
2011. at 1995 by
∆ET
using
–
The
th and both
1.902*
Variabl Colli
es’
e ns et price
**
Definit va al.,
9.261*
**
ions
lu 1997
12.06*
are , for
present e exam
**
ed in of ple).
R2
0.767
Table
ac In
0.572
1. the
co follo
0.640
F 4.2 un wing
28.03 tin secti
104.1 Retu ons,
g com
108.07
Prob(F inf panie
rn
-stat) or s’
(0.000) attrib
m utes
(0.000) and
(0.000) ati such
Notes. Pric on
as
***
posit
is ive
and **
e aff vs.
are
statisti ectnegat
ive
cally Mod ed
earni
signifi
by ng
cant at els
1% th and
size
and
amo e will
5%
co be
respect
ively.
ng m exam
ined
The pa to
sample Com ni deter

es’mine
consist
s of 21 pany whet
insuran att her
these
Attri rib attrib
ce
firms
ut utes
listed
in the butes
es have
Saudi Previ
su any
Stock
ch impa
ous as ct on
Excha
nge studi pr the
with es
ofi value
136
ta relev
have bil ance
 143

ijbm. cc senet .org Int ernational Jo urnal of Busines s and M

and year ( poth are in Boo expl el, signi nt re a
0.000
Pooled hn of re 011)
nb 277 α1EPSsigni k my ag
retur s pres anat bo fica than le le 3. ve Analysis gsa pi IFR su to
–1.868 mod /Pjt-1 fican E vari e
n 2007D1esis.
mod to ente si k ory ok nt the va eI w
73.89*
Entire i S lts som t at x4 able is
α2(E (D2)
els ) It is d in gn valu pow va for coef nt 0.389 on of e
Pric Retu Sample el 2 E 1% I
for 2001ha defi Tabl ifi e of er in lu loser ficie fo Nw
–0.00 valu Al exte jt-
and is
Sau 4. e3 the e firm nt of r 452 i e - nt. 1)/P 5%
defi
di 4.2.1s ned and ca equi post of s all fir e rn as 190.4t rele Se (Ne respe
ned
α3(EPS
insu m ha for
Posit be as 4. nt ty is - eq in firm 0.00 h449 vanc Tabl ctive
ranc jt/P
the
e In insig IFR ui the s. s regr Du –192.1 e, li gati
ive en one in ly.
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