The value relevance of earnings, book value and cash flow: Empirical evidence in Viet Nam

Abstract

This study examines the value relevance of accounting information- including earnings, book value of equity, and operating cash flows- among non-financial firms listed on the Vietnamese stock market during the period 2014- 2023. Data from 431 companies listed on the HOSE and HNX exchanges were collected via the FiinPro-X platform and analyzed using panel data regression techniques (OLS, FEM, REM, Hausman test, and GLS). The findings indicate that all three accounting variables are statistically significant in explaining stock prices, with earnings showing the highest level of value relevance, followed by book value of equity and operating cash flows. A time-series analysis reveals a declining trend in value relevance over the study period, particularly during the COVID-19 pandemic (2020- 2021), suggesting changes in how the market responds to accounting information under conditions of uncertainty. This study contributes empirical evidence on the role of accounting information in stock valuation in emerging markets and provides implications for investors, corporate managers, and regulators in enhancing financial reporting quality.