Since 1990, the economic environment has been characterized by the globalization of financial markets, the rise of multinationals and the complexity of interfirm relationships. Therefore, the need for companies to have comparable and comprehensive accounting information is confronted with the diversity of accounting clusters and heterogeneous of accounting practices around the world. In addition, in the early 2000, accounting scandals, such as Enron and Worldcom, were reflected in the failing of existent accounting clusters (such as US GAAP) (Liu et al., 2014). In fact, the issue for international accounting harmonization was seen to be sufficient and practical. As a result, International Financial Reporting Standards (IFRS) take a great importance in the accounting standardization and several countries enabled their companies to voluntarily adopt international standards (Kim and Shi, 2012). In 2002, the European Union (EU) required that their listed companies prepare their consolidated financial statements accordingly for IFRS starting on the 1st of January 2005. This paper examines whether the value relevance of the equity book value, earnings and changes in earnings improved after the transition to International Financial Reporting Standards (IFRSs). The quality of accounting information is one of the most fundamental elements that could affect the stakeholders’ economic decision making (Deaconu et al., 2010). The information content of accounting numbers should reflect the true and fair view of the firm’s financial situation (Chandrapala, 2013). The value relevance of accounting information is a classical matter in the accounting literature. Beaver (1968) and Ball and Brown (1968) were the first to investigate the value relevance of accounting earnings. Over the last two decades, the globalization of financial markets and the emergence of multinational firms have enhance the necessity to have reliable, comparable and more relevant accounting information. Then, the International Accounting Standards Board (IASB) developed the IFRS with the aim of establishing a common accounting language across the world (Ball, 2006). New standards are intended to increase the investors’ confidence in the financial markets. Since 1st January 2005, the European Community Regulation 1606/2002 required that Europeans listed companies adopt IFRS to prepare their consolidated accounts. The transition to IFRS sets the value relevance of accounting information at the center of the debate about the legality, sincerity and regularity of financial statements. Since the mandatory IFRS adoption in Europe, researchers’ attention has focused on whether accounting information is more relevant under the domestic standards (DS) or under IFRS (Barth et al., 2008; Kim and Yoon, 2012; Tsalavoutas et al., 2012; Md Khokan et al., 2013; Elshandidy, 2014; Veith and Werner, 2014). Cordazzo (2013) argued that the requirement for IFRS by the European countries affected many areas of accounting practice through the introduction of fair value, revenue recognition, impairment tests, deferred taxes, leases, etc. The transition to IFRS ensures the comparability and the reliability of consolidated accounts.