Abstract

This paper examines the value relevance of accounting information in selected Middle Eastern countries (Bahrain, Saudi Arabia and UAE) for the per-period and post-period of accounting reforms, which could describe the effect of accounting standards reform in these countries. The result obtained from portfolio approach shows accounting information is value relevant to investor in all selected stock exchanges. A comparison of the results for the periods before and after reforms shows an improvement in value relevance of accounting information after the reform in accounting standards in Bahrain and Saudi Arabia stock markets, while the results for UAE stock market shows a decline in value relevance of accounting information after the reform in accounting standards. It could be interpreted that following IFRS in UAE did not improve value relevancy of accounting information.

Key word: Value relevance, IFRS, accounting information, Bahrain, UAE, Saudi Arabia.