Value relevance of financial statement information – measurement and factors affecting it

Abstract

The article synthesizes and analyzes the views of previous researches on the relevance of financial statement information to propose the concept of relevance - one of the fundamental qualitative characteristics of financial statement information. At the same time, the article also points out that, to have value relevance, financial statement information must be associated with the market value of companies. In addition, the author also synthesizes and analyzes the main model used to measure the relevance of financial statement information as well as factors affecting it.