The Effect Of Ownership Structure On Value Relevance Of Accounting Information: An Empirical Evidence From Iran

The purpose of this paper is to investigate the impact of ownership structres on value relevance of book value, earnings and cash flows in security prices given by firms listed in Tehran Stock Exchange (TSE) in Iran for the period from 2004 to 2014. The study basically use Feltham and Ohlson (1995) valuation model. The empirical results of the paper indicate that First, earning per share, book value and cash flows are value relevant, while Second, book value is the most value relevant variable and cash flows have more value relevance than earning per share in all samples. Third, incremental value relevance of book value, earnings per share and cash flows is greater in private – owned firms than in state-owned firms.