Table 5. Value relevance of EFA amount...

Table 5.

Value relevance of EFA amount and classification choice

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
	Pre	Post	Pre	Post	Pre	Post	Pre	Post
DV = Price	Non-Fin				Fin
BVS_S	0.470*** (5.290)	1.399*** (12.710)			0.976*** (6.990)	0.715*** (4.140)
BVS_S^*			0.665*** (5.870)	1.608*** (11.350)			1.026*** (8.190)	0.969*** (5.880)
AmtEFA_S			−0.042 (−0.040)	0.837 (1.470)			0.312*** (2.610)	0.383** (2.300)
CI_S	8.930*** (12.320)	1.953*** (2.790)			5.760*** (5.630)	9.785*** (6.900)
CI_S^**			8.835*** (12.270)	2.261*** (3.080)			7.856*** (10.330)	9.330*** (7.680)
PLEFA_S			21.021 (0.240)	−11.275 (−0.660)			5.839 (0.690)	4.509 (0.390)
OCIEFA_S			−10.407 (−0.910)	2.848 (0.310)			11.393*** (3.310)	4.089 (0.570)
Constant	3.359* (1.760)	2.542 (1.570)	3.089 (1.640)	2.061 (1.230)	0.757 (0.770)	−0.410 (−0.290)	1.108 (1.190)	0.239 (0.170)
Industry FE	Yes	Yes	Yes	Yes	No	No	No	No
Year FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
N	289	304	289	304	148	152	148	152
Adj R²	0.641	0.746	0.653	0.727	0.883	0.821	0.899	0.838

	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)
	Pre	Post	Pre	Post	Pre	Post	Pre	Post
DV = Price	Non-Fin				Fin
BVS_S	0.470*** (5.290)	1.399*** (12.710)			0.976*** (6.990)	0.715*** (4.140)
BVS_S^*			0.665*** (5.870)	1.608*** (11.350)			1.026*** (8.190)	0.969*** (5.880)
AmtEFA_S			−0.042 (−0.040)	0.837 (1.470)			0.312*** (2.610)	0.383** (2.300)
CI_S	8.930*** (12.320)	1.953*** (2.790)			5.760*** (5.630)	9.785*** (6.900)
CI_S^**			8.835*** (12.270)	2.261*** (3.080)			7.856*** (10.330)	9.330*** (7.680)
PLEFA_S			21.021 (0.240)	−11.275 (−0.660)			5.839 (0.690)	4.509 (0.390)
OCIEFA_S			−10.407 (−0.910)	2.848 (0.310)			11.393*** (3.310)	4.089 (0.570)
Constant	3.359* (1.760)	2.542 (1.570)	3.089 (1.640)	2.061 (1.230)	0.757 (0.770)	−0.410 (−0.290)	1.108 (1.190)	0.239 (0.170)
Industry FE	Yes	Yes	Yes	Yes	No	No	No	No
Year FE	Yes	Yes	Yes	Yes	Yes	Yes	Yes	Yes
N	289	304	289	304	148	152	148	152
Adj R²	0.641	0.746	0.653	0.727	0.883	0.821	0.899	0.838

Note(s): This table presents the results of examining the value relevance of firms’ EFA amounts and classification choice before and after IFRS 9. The dependent variable Price is the share price of firm i three months after its balance date in year t. Columns (1)–(4) present the value relevance test results in non-financial firms and Columns (5)–(8) are the results in financial firms. Columns (1)–(2) and (5)–(6) are baseline models and show the value relevance of book value of equity (BVE_S) and total comprehensive income (CI_S) before and after IFRS 9, respectively. Columns (3)–(4) and (7)–(8) show the value relevance of EFA amount (AmtEFA) and EFA FVGL effect on profit or loss (PLEFA_S) or on OCI (OCIEFA_S) before and after IFRS 9, respectively. All variables are defined in Appendix 2. Figures in parentheses are t-statistics. All continuous variables are winsorised at the top and bottom one percentile. Two-tailed tests of significance:

*** = <0.01,

** = <0.05 and

* = <0.1

Source(s): Table by authors

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