This study examines the relevance-value of accounting information represented by
earnings and book values for firms listed on Damascus Stock Exchange. This study is
based on the Return Model developed by Easton & Harris (1991), and on the Price Mod
el
developed by Ohlson (1995).The researcher uses the annual data of the financial
statements from 2009 to 2012. The results of this study show that accounting earnings are
value-relevant to explaining the changes in stock returns, and that the change-variable in
earnings correlates positively and significantly with cumulative return, but earnings level
variable does not related significantly to cumulative returns. Based on the price model, the
earnings of each share and its book-value relate positively and significantly to share-price.
Therefore, income statements and balance sheets reflect value-relevant information for
investors at Damascus Stock Exchange. This information is represented by accounting
earnings and book values, but the variable of earnings level does not explain the changes in
cumulative returns.
