Full metadata record
DC FieldValueLanguage
dc.contributorMulti-disciplinary Studiesen_US
dc.contributorDepartment of Accountancyen_US
dc.creatorWong, Yuk-sim-
dc.publisherHong Kong Polytechnic University-
dc.rightsAll rights reserveden_US
dc.titleValue relevance of non-recurring earnings items on prices : a study of Hong Kong listed firmsen_US
dcterms.abstractThis study examines the value relevance of non-recurring earnings items on prices. Disaggregated accounting line items are selected as proxies to differentiate their explanatory powers. Besides, the value relevance of earnings and book values is also accounted for. Finally, issues of relative and incremental information content of earnings and book values are identified and examined. My study is motivated by the high incidence rate of Hong Kong listed firms reporting non-recurring earnings items in their financial statements. However, the findings are similar to the results of past researches that nonrecurring earnings items in Hong Kong context is insignificant to explain security prices. Evidences from the previous empirical studies highlight that disaggregated accounting data has different information content in explaining prices. In this study, earnings components (operating earnings, recurring earnings, nonrecurring earnings items and net earnings) are regressed with prices. The outcomes illustrate that recurring earnings exhibit a relatively higher explanatory power on prices than other variables. In addition, the combined value relevance of earnings and book values is examined. Consistent with past studies by other researchers, the results demonstrate that combined explanatory power of earnings and book values are more significant than measuring alone. However, the yearly regression results seem to be volatile during the study period as stock market in Hong Kong is subject to the influence of political change on handing over of the sovereignty in 1997. In addition to the yearly regression analysis, association of industry effect and impact of positive and negative non-recurring earnings items on prices are also accounted for in the study. The results of this study reveal that properties industry exhibits more significant association with prices. On the other hand, positive non-recurring earnings items exhibit higher explanatory power on prices than negative one. Finally, the results of measurement of relative and incremental information content on earnings components and book values have provided an insight to identify which variable is a better proxy in explaining prices.en_US
dcterms.extentx, 170 leaves : ill. ; 30 cmen_US
dcterms.educationalLevelAll Masteren_US
dcterms.LCSHCorporations -- China -- Hong Kong -- Financeen_US
dcterms.LCSHStocks -- Prices -- China -- Hong Kongen_US
dcterms.LCSHHong Kong Polytechnic University -- Dissertationsen_US
dcterms.accessRightsrestricted accessen_US

Files in This Item:
File Description SizeFormat 
b15555173.pdfFor All Users (off-campus access for PolyU Staff & Students only)4.84 MBAdobe PDFView/Open

Copyright Undertaking

As a bona fide Library user, I declare that:

  1. I will abide by the rules and legal ordinances governing copyright regarding the use of the Database.
  2. I will use the Database for the purpose of my research or private study only and not for circulation or further reproduction or any other purpose.
  3. I agree to indemnify and hold the University harmless from and against any loss, damage, cost, liability or expenses arising from copyright infringement or unauthorized usage.

By downloading any item(s) listed above, you acknowledge that you have read and understood the copyright undertaking as stated above, and agree to be bound by all of its terms.

Show simple item record

Please use this identifier to cite or link to this item: https://theses.lib.polyu.edu.hk/handle/200/1712