The Value Relevance and Predictability of IFRS Accounting Information: The Case of GCC Stock Markets

Abdelmohsen M. Desoky, Gehan A. Mousa


This paper investigates some earning attributes (as the value relevance and predictability) of accounting information provided under International Financial Reporting Standards (IFRS ) in the Bahrain Bourse (BHB) and the Muscat Securities Market (MSM). The sample used in this research consists of 280 year-firm observations from 40 different companies listed in BHB; and a total 203 year-firm observations from 29 companies listed in MSM covering the period 2005-11. The findings of the study suggest that, for BHB, the adoption of IFRS leads to improvement in the value relevance of financial reporting contradictory predictability attribute as predictability of accounting information in listed companies of BHB is reduced after the adaption of IFRS. In MSM, the adoption of IFRS captures approximately similar value relevance of accounting information before adoption IFRS, however, predictability of accounting information improves after the adaption of IFRS. It was clear that the IFRS adoption by companies in MSM enhances the predictability of accounting information more than in BHB.

Full Text:




  • There are currently no refbacks.

Copyright (c) 2014 Abdelmohsen M. Desoky, Gehan A. Mousa

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

International Journal of Accounting and Financial Reporting  ISSN 2162-3082

Copyright © Macrothink Institute 

'Macrothink Institute' is a trademark of Macrothink Institute, Inc.

To make sure that you can receive messages from us, please add the '' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders.