Brimble information in anumber of countries, including Australia. Results

Brimble and Hodgson (2007) fail to find any systematic decline in the value-relevance ofearnings but do not examine the inter-temporal value relevance of revenue.Therefore, anempirical examination of the changing value relevance of revenue in Australia would beof interest. Third, although Australia has been studied in the comparativevalue-relevance research, extant studies use a single performance measure and arather small Australian sample compared to the present study. For example, Hung(2001), Ali and Hwang (2000), and DeFond et al. (2007), among others, investigate theimpact of shareholder protection on the properties of accounting information in anumber of countries, including Australia. Results reveal that countries with stronginvestor protection and enforcement regimes (Australia, for example) provideaccounting information that is more strongly associated with market returns.This paper also addresses the role of firm-specific characteristics, like firm size, firmprofitability and firm life cycle, in moderating the association between market returnsand alternative firm performance measures. Specifically, this paper addresses fourresearch questions:RQ1. Which of the performance measures shows the strongest association withmarket returns, and how did the documented association vary over time?RQ2. How does firm size affect value relevance of alternative performance measures?RQ3. Is there any incremental value relevance of revenue vis-a` -vis earnings and havethere been any longitudinal changes in such value relevance?RQ4. How do firm profitability and firm life cycle characteristics affect theincremental value relevance of revenue information? In addressing thesequestions, this paper considers seven alternative performance measuresnamely, total revenue (TOTREV), earnings before interest tax depreciation andamortisation (EBITDA), operating income proxied by earnings before interestand tax (EBIT), earnings before tax (EBT), net profit after tax but beforeAccountingperformancemeasures191

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