Abstract:
This research investigates the impact of differential value
relevance of accounting information on investors'
decisions in Sri Lankan commercial banks during noncrisis
(2013-2018) and crisis (2018-2022) periods. Key
metrics such as Earnings per Share (EPS), Return on
Equity (ROE), Earning Yield (EY), Net Asset Value Per
Share (NAVPS), and Return on Assets (ROA) were
analyzed, with Market Value per Share (MVPS) as the
proxy for investors' decisions. Data from ten licensed
commercial banks listed on the Colombo Stock
Exchange from 2013 to 2022 was analyzed using
descriptive statistics, correlation analysis, and panel
regression. The study found a strong positive correlation
between NAVPS and MVPS during non-crisis periods,
while EY was negatively associated with MVPS. In the
crisis period, EY had a negative link to MVPS, and EPS
showed a positive relationship. These findings provide
valuable insights for stakeholders in Sri Lanka's
commercial banking sector.
