publication . Article . 2011

Value Relevance of Consolidated Versus Parent Company Financial Statements: Evidence from the Largest Three European Capital Markets

Victor-Octavian MULLER;
Open Access
  • Published: 01 Jan 2011 Journal: Journal of Accounting and Management Information Systems, volume 10, issue 3 September, pages 326-350
Within the European Union, parent companies have to prepare and publish both consolidated and individual financial statements. The objective of financial statements with general purpose is to give information regarding the financial position, performance and changes in financial position of the reporting entity, information that is useful to investors and other users in making economic decisions. In order to be useful, financial information needs to be relevant to the decision-making process of users in general, and investors in particular. Therefore, the following question arises naturally – which of the two sets best serves the information needs of investors (...
free text keywords: Consolidated Financial Statements, Parent Company Financial Statements, Market Value Relevance, jel:G34, jel:F23, jel:G15, jel:M41
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