Can Big 4 Audit Firms Enhance the Value Relevance of Accounting Information?

Rarely is there empirical research into the correlation among the value relevance of accounting data and the quality of audits. The objective of this study is to investigate the correlation among the quality of audit and the value relevance of accounting indicators specifically earnings, book value and dividends among companies included in the Amman Stock Exchange for the period 2009–2020. The study conducted an estimation of the basic value relevance formula and the modified formula through OLS regressions. Then it used Paired-samples t-test to evaluate the disparity in the value relevance of measurements audited by Big 4 auditors and non-Big 4 auditors. This assessment is carried out based on the R-square. the findings indicate that, in the Amman capital market, there is substantial evidence suggesting that the earnings, book value and dividends audited by Big 4 firms exhibit a higher degree of impact on share price compared to those examined by non-Big 4 firms. The findings presented offer empirical proof concerning the value relevance of earnings, book values, and distributed dividends in a developing market.