ERICA Working Group
The ERICA WG has published a new “ERICA series” document, under the title: “The value relevance of consolidated financial information”. The value relevance measures the extent to which financial information can explain investors’ decisions, which are reflected in the groups’ market value. The study examines the value relevance of IFRS financial information for each year from 2012 until 2016, per country, throughout sectors and also within group size categories. The approach applied follows the idea that the joint explanatory power of book value and net income gauges the extent to which financial information is relevant to investors.