Accounting Information: Which Information Attracts Investors Attention First?

Abstract

This study extends Obaidat (2016) and Mohan & John (2011) studies by investigating the accounting information that is considered more value relevant for individual investors in Amman Stock Exchange (ASE), emphasizing earning and cash flows information. In addition, the study examined if investors have the time and abilities to assess the accounting information. Finally, this study measured the degree of consensus among different types of investors concerning the issues investigated. The results indicated that investors perceive all accounting information to be value relevant and considered it to be complementary to each other, where the most value relevant information was the financial risk followed by previous earning, liquidity, expected earning, and market stock price. The results indicated that the value relevance of earning information is superior to the value relevance of cash flow information. The study documented that investors have the time and abilities to assess the value relevance of accounting information.