EFFECTS OF UNDISCLOSED ASSETS ON VALUE RELEVANCE OF ACCOUNTING INFORMATION: TURKEY SPECIFIC EVIDENCES

This paper investigates the value relevance of accounting information in Turkey by using the data of 53 active firms listed and traded on Borsa Istanbul between 2009 and 2016. Four different models are tested by panel data analysis. Ohlson (1995) price model shows that book value and net income are value relevant. Results of the second model which consists the effect of reported intangibles separately indicates that book value creation based on tangibles is value irrelevant while reported intangibles has limited impact on market values. The third model where unreported intangibles are added provides evidence on the high level value relevance of undisclosed assets. The fourth model constituted by using net income, reported intangibles and unreported intangibles proves that intangibles are more value relevant than reported accounting numbers in Turkey