Journal ArticleDOI
Discussion of “Combining Earnings and Book Value in Equity Valuation”*
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This article is published in Contemporary Accounting Research.The article was published on 1998-09-01. It has received 31 citations till now. The article focuses on the topics: Residual income valuation & Pre-money valuation.read more
Citations
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Conservative accounting and equity valuation
TL;DR: In this paper, the authors examined how conservative accounting affects the relation between accounting data and firm value and showed that conservative accounting can be characterized equivalently in terms of book value, earnings, or book rate of return.
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How Much Does Expertise Reduce Behavioral Biases? The Case of Anchoring Effects in Stock Return Estimates
TL;DR: In this paper, the authors used data from surveys involving 300 Scandinavian financial market professionals and 213 university students to conduct three controlled experiments in which they manipulated the background information given to subjects.
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Attribute Differences Between US GAAP and IFRS Earnings: An Exploratory Study
TL;DR: In this article, the authors compare the quality of the two standard regimes using a sample of German New Market firms and find that US GAAP prepared financial statements and IFRS information are overall very comparable.
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Attribute differences between U.S. GAAP and IFRS earnings: An exploratory study☆
TL;DR: In this paper, the authors explore attribute differences between U.S. GAAP and IFRS earnings and find that the difference in predictive ability between the two metrics is not significant and consistent.
Journal ArticleDOI
The Materiality of Earnings Surprise
TL;DR: The authors used First Call Corp. earnings surprise data and market-adjusted stock returns for the seven-day period surrounding each of about 22,000 annual earnings announcements from 1992-1997 to address several questions recently posed by SEC officials.
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Journal ArticleDOI
Earnings, Book Values, and Dividends in Equity Valuation*
TL;DR: In this article, a model of a firm's market value as it relates to contemporaneous and future earnings, book values, and dividends is developed and analyzed, and two owners' equity accounting constructs provide the underpinnings of the model: the clean surplus relation applies and dividends reduce current book value but do not affect current earnings.
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Valuation and Clean Surplus Accounting for Operating and Financial Activities
TL;DR: In this paper, the relationship between market value and accounting data concerning operating and financial activities is modeled as a linear model, where market value is assumed to equal the net present value of expected future dividends, and is shown, under clean surplus accounting, to also equal book value plus the expected future abnormal earnings.
Changes in the value-relevance of earnings and book value over the past forty years
D W Collins,E L Maydew,L S Weiss +2 more
TL;DR: The authors investigated systematic changes in the value-relevance of earnings and book values over time and found that the combined value-remlevance has not declined over the past forty years and appears to have increased slightly.
Journal ArticleDOI
Changes in the value-relevance of earnings and book values over the past forty years
TL;DR: In this paper, the authors investigated systematic changes in the value-relevance of earnings and book values over time and reported three primary findings: (1) the combined value relevance of the two metrics has not declined over the past forty years and, in fact, appears to have increased slightly.
Posted Content
Earnings, Adaptation and Equity Value
David Burgstahler,L D Dichev +1 more
TL;DR: In this article, the authors developed and tested an option-style valuation model, whose main prediction is that equity value is a convex function of both earnings and book value, where the function depends on the relative values of earnings and Book value.