Value relevance of reported earnings and book value: Evidence from Indian stock market
Aijaz Ahmad Mir and Khursheed Ahmad Butt
The study examines the value relevance of accounting information in the Indian stock market, focusing on the impact of earnings per share (EPS) and book value per share (BVPS) on stock prices. The study has applied a modified version of the Ohlson (1995) [33] valuation model to examine the impact of earnings per share (EPS) and book value per share (BVPS) on stock prices. The results of the study revealed that BVPS has a statistically significant positive impact on stock prices, suggesting that investors give due weightage to it when making investment decisions. However, EPS has been found to have no discernible impact on stock prices, suggesting that investors consider book value to be a more reliable indicator of firm value than EPS.
Aijaz Ahmad Mir, Khursheed Ahmad Butt. Value relevance of reported earnings and book value: Evidence from Indian stock market. Int J Res Finance Manage 2025;8(2):537-545. DOI: 10.33545/26175754.2025.v8.i2f.581
Other Journals