| This research aims to provide empirical evidence concerning the value relevance of earnings and book values to stock prices (individually and in aggregate) in Iraqi Stock Exchange market in the light of shift in Iraqi environment from macro-economic to micro-economic after American occupation in 2003. thus, this research aims to explore the association between the value-relevance of accounting information before and after 2003. This study contributes to understand reflections of environmental factors on accounting and the responding of accounting to these factors , and its effect on the way the investors in certain period interpret and apply information, because this information plays a vital role in the efficient capital market. This research covers the Iraqi value relevance through an empirical approach based mainly on the binary regression technique adopted by Ohlson (1995) through a sample consists of 26 companies listed and continued in Iraqi stock market along for two periods, before and after American occupation in 2003 : first period (from 1996 to 2002) for (182 observation-year) and second period which is after 2003 (from 2006 to 2012) for (182 observation-year), the total sample consists of (364 observations-year). It is been found that the value relevance before 2003 are higher than after 2003, but it inclines over time for two periods. This result supports the accounting in Iraq which does not respond to the shift in environment factors effectively . . |