relevance of accounting information in brics and usa companies

The demand for relevant accounting information has been intense by the regulatory bodies in last years, who havesougth to establish standards that make accounting information relevant and can be used safely in the decision-making process, especially considering decisions related to the capital market. Along these lines, James Ohlson proposed company valuation models based on accounting numbers. The objective of this study is to verify the differences in the Relevance of Accounting Information in the capital markets of Brazil, Russia, India, China and South Africa (BRICS) and the United States of America, based on data available on stock Exchange of these countries, through the Residual Income Valuation (RIV) and Abnormal Earnings Growth (AEG) models proposed by Ohlson (2005). By means of the Panel Data Regression, it was concluded that the variables of each country show different behavior regarding their influence in the capital market, since besides presenting different coefficients, there was a large variation of R2,being 0.02 in Brazil for the AEG model and 0.79 in China for the RIV model. As regards the verification of which model (RIV or AEG) best adapts to the reality of each country, it was observed that in Brazil and South Africa the AEG model presented a greater adjustment, whereas in Russia and China the RIV model was more suitable for both lagged variables in t-1 and non-lagged ones, as it has more expressive R2 and lower value for Akaike's Information Criterion. For the US and India, for non-delayed variables, AEG is the best model for India and RIV for the US. Already with lagged variables, the result is reversed.