ICAS Proceedings

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Category: ICAS 2016 Proceedings
Author: Philip Jehu, Mohd Azhar Ibrahim
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Abstract

Recent studies show that macroeconomic research has evolved independent of accounting research with a focus on economic indices, without incorporating accounting aggregates. The write up seeks to investigate the informativeness of aggregate accounting earnings obtainable from the capital markets on GDP growth. This desk research potentially identifies the support base and framework for inclusion of accounting earnings aggregate into GDP compilations. The research has implications for current practice in GDP computations as well as widening accounting research to macroeconomic level, as against individual firm-level.

Keywords: Aggregate accounting earnings, capital markets, GDP, market capitalisation, traded value.

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