Have COVID-19 and the War in Ukraine Caused a Decline in the Value Relevance of Accounting Information? Evidence from Poland

Research background Within the research area of value relevance (VR), the impact of macroeconomic changes is usually analysed. The influence of economic crises, such as the Asian financial crisis, global financial crisis, and COVID-19, on VR was, however, inconclusive. Moreover, it differs between individual markets. Purpose The aim of the paper was to analyse the impact of COVID-19 and the war in Ukraine on the value relevance with the example of Polish listed companies. VR of earnings, book values, and cash flows was taken into account in this regard. Research methodology Panel data models (fixed effects) were used. The focus was especially on interactions between earnings per share (EPS), book values per share (BVPS), cash flows per share (CFO), and binary variables referring to periods of COVID-19 and the war in Ukraine. Results VR of earnings, book values, and cash flows noted the positive impact of COVID-19. However, the war affected book values and cash flows negatively. The results obtained highlight the specificity of different crises and various markets, with the findings being only partially in line with the results of previous studies. Novelty So far, the impact of the war in Ukraine on VR has not been analysed. Moreover, the influence of COVID-19 on VR on the Polish market has also not been studied.