Abstract:
This research examines the value relevance of the accounting information in Sri Lanka which has taken book value per share (BVPS), operating cash flow per share (OCFPS), earnings per share (EPS) and return on assets (ROA) as independent variables and the market value per share (MVPS) as dependent variable. The sample of the study includes six largest sectors in Sri Lanka with the observations of 1490. The research is based on Ohlson’s (1995) price model along with OCFPS and ROA are captured. Regression Study found that EPS, ROA and BVPS have significant positive relationship with market value per share. However OCFPS is not statistically significant, but it still acts as a one of the determinant of market value per share with other mentioned variables. The data have been taken from the period 2012 to 2019. The research has covered the periods after to the accounting restructure in 2012 in which Sri Lanka enforced LKAS and SLFRS that were fully converged to respectively IAS and IFRS.
