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The authors illustrate accounting information's effects in terms of necessity and sufficiency, using a set-theoretic approach, and highlight how the approach complements conventional correlational analyses.

The authors examine the relationship between accounting numbers (accounting information) and stock prices (effect) under both correlational and set-theoretic perspectives using a value relevance methodology.

The claim that accounting information is significantly correlated to an outcome does not inform the accounting information's necessity or sufficiency. In addition, findings suggest that not all control variables that are significantly correlated to a supposed accounting effect are necessary to explain that effect. Moreover, variables reflecting accounting information are not individually sufficient to explain the effect under investigation.

The study contributes to set-theoretic approach to accounting research and echoes the call for a diversity of research approaches in accounting.

The study may have practical implications for various accounting information users, including investors, financial analysts and financial market and accounting disclosure regulators as well. Indeed, accounting information users should consider the importance of the combined effect of multiple pieces of accounting information in the users' positions on firms' stocks. Understanding what might be the relevant combinations of accounting information associated with a given organizational context is a key in making compelling accounting-informed decisions. Such knowledge can inform reflections of accounting disclosures and regulations on the combined effects of several accounting information.

First, the study adds to the newly introduced set-theoretic approach to empirical accounting. The study also resonates with the call for a diversity of research approaches in accounting. The authors empirically demonstrate that significant correlation between accounting information and its effects does not connote “necessity” or “sufficiency,” which is rather revealed by qualitative comparative analysis (QCA). Such complementarity can help accounting researchers to carry out (1) new investigations of accounting's earlier hypotheses or propositions and (2) investigations of new accounting hypotheses/propositions deriving from existing accounting theories and (3) to explore new relationships between accounting phenomena. Second, the study incidentally contributes to value relevance literature in terms of contextualization of the relevance of accounting information. Specific to the African capital markets, the study complements the few recent studies on the Bourse Régionale des Valeurs Mobilières d’Abidjan (BRVM).

The purpose of this study is to investigate the value relevance of accounting information for Islamic, conventional and hybrid banks. It also investigates the moderation impact of IFRS adoption and AAOIFI mandatory adoption on value relevance of accounting information.

Using value relevance models, The authors run panel data regressions on 47 Islamic banks, 112 conventional banks and 42 hybrid banks (conventional banks with Islamic windows). The study covers listed banks from 14 countries over the period 2010–2018.

paper offers three empirical evidences. First, the authors find that value relevance of accounting information is higher for Islamic banks, compared to conventional banks. Second, the authors find that IFRS framework strengthens the relevance of accounting information in Islamic banks, but the authors did not find the same for hybrid banks. Third, the authors find that the mandatory adoption of AAOIFI accounting standards has a moderation effect on value relevance of accounting information for both Islamic banks and hybrid banks. The robustness analysis shows that there is a significant contribution of compliance with Islamic Finance rules in IBs and HBs, which substantially reduces managers' opportunistic behavior to manage accounting information.

One limit of this research is the reduced number of sampled listed IBs since the authors deleted countries that do not have both listed Islamic and conventional banks.

The study is useful for investors that consider the Islamic ethical practices to make their investment decisions as well as for the standards-setting bodies that focus on establishing accounting standards for the Islamic banking industry.

The authors contribute to the value relevance literature by providing novel evidence on the value relevance in fully-fledged Islamic, fully-fledged conventional and hybrid Banks. The authors also provide new evidence on the moderating role of International Financial Reporting Standards (IFRS) and Auditing Organization for Islamic Financial Institutions standard (AAOIFI) for the value relevance of accounting information.

The study aims to investigate the Shari’ah governance quality effectiveness, at the bank and national levels, on the value relevance of Islamic banks’ (IBs’) earning per share and book value per share.

Quantitative analyses are conducted using a panel of 40 listed IBs from 12 countries during 2012–2019. Data were retrieved from the Refinitiv Eikon database and banks’ annual reports.

The findings suggest that Shari’ah supervisory boards’ attributes negatively influence the value relevance of accounting information while the internal procedures positively impact it. The results also provide evidence of a complementary effect between Shari’ah governance mechanisms at the bank and national levels on the value relevance of accounting information.

IBs’ boards and managers need to be more aware of the role of Shari’ah governance and its impact on value relevance. The observed complementarity between Shari’ah governance systems at the bank and national levels may incite regulators to include comprehensive Shari’ah governance regulations in their best practices. Strengthening collaboration between regulators and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is also required to create an enabling environment for investors to rely on the AAOIFI accounting standards in their investment decision-making process.

Existing studies tend to ignore the effectiveness of Shari’ah governance quality at the bank level on value relevance. There is a similar lack of empirical research on the effectiveness of the centralized Shari’ah governance scheme on accounting issues.