Abstract

The research aimed at framing concept of value relevance, especially value relevance of accounting information. It shows and discusses the most prominent statistical models that is used for measuring value relevance of accounting information beside determining basic variables in each model. This research also viewed the measurement effect of value relevance of accounting information in stocks prices for a sample of economical units that is recorded in Iraqi stock market.
This research is applied to a sample of economical banking units-Companies in banking sector-that is recorded in Iraqi stock market and the sample of research is 17 economical banking units for periods 2012-2013. Depending on the models of price, the research comes up with a group of conclusions. The most important conclusion is that there is the marked fall of the explanatory power of coefficient of determination R2 for each of the following individually: (1) The operating earnings for per share, (2) The book value for equity for per share.
The mentioned fall in value relevance of accounting information is considered as indicator of weakness in the financial reporting level in Iraq.