Value Relevance of Accounting Information: A Study on the Evolution of Value Relevance Between Sectors

Sammanfattning

This study investigates the evolution of value relevance of accounting information between the years 2000-2023 in the Nordics. Specifically, the purpose of our study is to examine if the combined and individual value relevance of accounting items has changed over time. In addition, we perform an in-depth analysis of five sectors: Materials, Industrials, Consumer Discretionary, Health Care and Information Technology. We utilize a nonlinear classification and regression tree model (CART) to examine the value relevance of 13 accounting items. The results indicate an increase in combined value relevance which could be attributed to the findings of an increasing value relevance of, among other items, intangible assets and R&D. The findings also show differences in the value relevance of accounting items between the sectors, indicating that sector-specific characteristics impact the importance of accounting information.