Regulated Booked Values or Macroeconomics?

Sammanfattning: Title: Regulated Booked Values or Macroeconomics? Seminar date: 02/06/2021 Course: FEKH69, Degree Project Undergraduate Level, Business Administration, 15 University Credits Points (UPC) Authors: Nikolaos Karabelas, Tim Vindehall, Simon Wallin Supervisor: Karin Jonnergård Key words: Value Relevance, IFRS, OMXS30, Booked Values, Ohlson model Research question: Which factors had an effect on the market value of companies listed on the OMX Stockholm 30 Index during the period of 2005-2020? Purpose: The purpose of this study is to investigate the potential effects of IFRS implementations on the value relevance of booked values over time, and furthermore study if macroeconomic factors are better than booked values in predicting stock market values, on the OMXS30. Methodology: Quantitative Research based on 432 annual reports as well as financial and macroeconomic data. Theoretical approach: The theoretical approach is based on previous research within the value relevance field. Complementing theories regarding the Efficient Market Hypothesis (EMH) and information asymmetry which capital market research relies on. Empirical approach: 27 Swedish companies listed on the OMXS30 were studied during the period 2005-2020. Data was collected from Business Retriever, Nasdaq Nordic and Riksbanken. Conclusions: Based on the results in this thesis, no significant increase in value relevance post-introduction of IFRS 9, 13 & 16 in companies’ financial reports can be evidenced. Moreover, macroeconomic factors have a greater impact on stock market prices (OMXS30) of companies, compared to their booked values.