The relevance of accounting information in the era of Ind AS: Evidence from a Nifty Energy Index

This paper investigates the value relevance of the financial information reported by energy companies included in the NSE Energy Index after the mandatory adoption of the Indian Accounting Standards (Ind AS) for the 2016–2017 accounting year. The fixed-effects model was employed on the panel data of energy companies included in the NSE Energy Index to study the impact of the accounting information on the market price of the shares for the period 2017–2021. The study suggests that a company’s book value consistently explained the variation in the market price across each year individually. Moreover, with the control of time across firms for the study period, book value per share and net cash flow from investing activities have significant explanatory power on the market price of a company’s shares. Profit after tax, which is widely used to determine a firm’s performance, cannot explain the variability in the market price of shares.