Impact of New Technology on Market Value Price and Value Relevance of Accounting Information in the Tehran Stock Exchange

Purpose - The main purpose of this study is to find out if there is any relationship between accounting information and company value and how accounting information affects value relevance. According to the progresses in all fields because of new technology, this study examined the influences of new information technology adoption on value relevance of accounting information. The assumptions of this study are supported by evidences from Tehran Stock Exchange. Design/methodology/approach - This study is correlative in approach and based on empirical and documentary analyses. The study also extended the international literature in market based accounting research by examining empirical evidence on relationships between company value and two accounting variables Earnings per share and Return on equity of 40 important firms listed on Tehran Stock Exchange. Findings - This study investigated the relationship between accounting information and value relevance of the company value. The results of this survey confirmed there is a relationship between these factors and characterized this relationship. Research limitation/implication - This research surveyed the data banks of 40 companies of Tehran Stock Exchange from 2002 to 2004, so for more accurate results, surveying more companies is suggested. Originality/value - Because of significant developments in information technology, which have increased the rate of data processes with a great accuracy, information technology also has great influences on accounting. So this study surveyed the impact new information technology on accounting information value relevance. The data for this study is from 40 important companies of TSE and it was for the first time in Iran in its way.