A Comparative Study on the Value Relevance of Accounting Information using Tobin’s Q and M/B Ratio

[Purpose]This study compares the value relevance of accounting information for five ASEAN countries (Indonesia, Malaysia, the Philippines, Singapore, and Thailand) for 2006－2020, and verifies whether any accounting information has value relevance by country. [Methodology]This study identifies the main financial variables affecting corporate value in ASEAN manufacturing companies and compares their relative value relevance. In particular, this study investigates the comparative value relevance of major financial variables for five of the ten ASEAN countries using Tobin’s Q and M/B ratio. [Findings]As a result of analyzing the entire sample, operating income, operating cash flow, and R&D expenditure are found to be variables that increase corporate value regardless of which analysis model is used. However, the debt ratios appear to decrease the corporate value in model 1, but increase the corporate value in model 2. The sales growth rate is shown to increase the corporate value in model 1, but shows a non－significant relationship in model 2. When comparing the research results of model 1 and model 2 targeting individual countries, the results are different for each country. The same results apply to both model 1 and model 2. They are sales growth rate, operating income, and operating cash flow. However, in terms of total assets, debt ratio, and R&D expenditure, it is different for each country. [Implications]This study’s analysis results will provide important data that can be referenced in transactions with ASEAN countries, as it analyses and compares the most important corporate valuation factors of five ASEAN countries. This study will also provide important guidance for individual and institutional investors to assess and evaluate the value of an enterprise when making investment decisions in ASEAN countries.