Abstract:
This study aims to examine the impact of value relevance of accounting information
on the share price of listed banks in Sri Lanka throughout 2015-2019. The banks'
share price was used as the dependent variable whilst the independent variables
include Earning per share, Book value per share, Dividend per share,, and net
operational cash flow per share. The study made use of secondary data gathered from
annual reports of banks. Descriptive and inferential analyses were performed.
Regression analysis confirmed a significant impact of value relevance of accounting
information on the share price of listed banks in Sri Lanka. Correlation analysis
revealed a significant positive relationship between Earning per share, Book value
per share, Dividend per share, and the share price of the banks, while operational cash
flow per share has an insignificant positive relationship. This study's findings will
assist both potential and existing investors in making investment decisions in listed
banks in Sri Lanka.
