India is one of the few countries where companies are required to give both consolidated financial statements (CFS) as well as parent-only financial statements. While parent-only statements are in existence for a long time, CFS was introduced recently. This study examines the value relevance of consolidated financial statements in India. The value relevance of consolidated financial statements is examined through an empirical study. The study examines the relationship between market values and consolidated earnings and parent-only earnings is analysed. The study uses four years data of 59 companies whose subsidiary earnings are more than 20% of consolidated revenue.
India is one of the few countries where companies are required to give both consolidated financial statements (CFS) as well as parent-only financial statements. While parent-only statements are in existence for a long time, CFS was introduced recently. This study examines the value relevance of consolidated financial statements in India. The value relevance of consolidated financial statements is examined through an empirical study. The study examines the relationship between market values and consolidated earnings and parent-only earnings is analysed. The study uses four years data of 59 companies whose subsidiary earnings are more than 20% of consolidated revenue.