Value Relevance of Accounting Earnings and the Information Content of its Components : Empirical Evidence in Tunisian Stock Exchange

The aim of this paper is to examine the value relevance of accounting earnings and its components for firm valuation in Tunisian Stock Exchange. We have tested three hypotheses relatives to the value relevance of alternative accounting measures and to the effect of the decomposition of this variable on its explanatory power. Empirical evidence showed on one hand, that operating income, income before taxes, special items and income taxes are value relevant for firm valuation and on the other hand, cash flow from operations and accruals are not value relevant