Examination of the Value Relevance of Footnote Information with Finance Leases

Abstract

This paper examined whether earnings measured by a finance lease model or by an operating lease model were more relevant to the stock prices by improving Saka（i 2010-a）. Saka（i 2010-a） found that the value relevance of earnings via a finance lease model rather than by an operating lease model was significantly higher in the year 2003 but that it had two problems : 1）firms that disclose their expenses by a finance lease model represented a very small part of the sample and 2）outliers were not excluded. This paper dealt with these problems, and the results showed that there was no significant difference between earnings as measured by these different models.