Earnings Forecasting And Equity Valuation Under Conservative Accounting PDF Download
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Author | : Xiaojun Zhang |
Publisher | : |
Total Pages | : 256 |
Release | : 1998 |
Genre | : |
ISBN | : |
Download Earnings Forecasting and Equity Valuation Under Conservative Accounting Book in PDF, ePub and Kindle
Author | : Xiao-jun Zhang |
Publisher | : |
Total Pages | : 129 |
Release | : 1998 |
Genre | : |
ISBN | : |
Download Earning Forecasting and Equity Valuation Under Conservative Accounting Book in PDF, ePub and Kindle
Author | : Richard P. Brief |
Publisher | : Routledge |
Total Pages | : 324 |
Release | : 2013-09-13 |
Genre | : Business & Economics |
ISBN | : 113560942X |
Download Clean Surplus Book in PDF, ePub and Kindle
First published in 1996. The relationship between the present discounted value of future cash flows and discounted excess earnings should be viewed as a mathematical property of a double-entry book[1]keeping system based on clean surplus. The purpose of this anthology is to facilitate future research by highlighting these historical developments and by showing how more recent theoretical and empirical research fits into the earlier history. The book is divided into four sections: historical overview; analytical properties of clean surplus; the theory of the clean surplus equation; and empirical implications.
Author | : Julia Nasev |
Publisher | : Springer Science & Business Media |
Total Pages | : 129 |
Release | : 2009-12-28 |
Genre | : Business & Economics |
ISBN | : 3834984582 |
Download Conditional and Unconditional Conservatism Book in PDF, ePub and Kindle
Julia Nasev examines the impact of conservative accounting numbers on valuation estimates and on real economic decisions such as cost stickiness.
Author | : Stephen Penman |
Publisher | : Columbia University Press |
Total Pages | : 265 |
Release | : 2010-12-30 |
Genre | : Business & Economics |
ISBN | : 0231521855 |
Download Accounting for Value Book in PDF, ePub and Kindle
Accounting for Value teaches investors and analysts how to handle accounting in evaluating equity investments. The book's novel approach shows that valuation and accounting are much the same: valuation is actually a matter of accounting for value. Laying aside many of the tools of modern finance the cost-of-capital, the CAPM, and discounted cash flow analysis Stephen Penman returns to the common-sense principles that have long guided fundamental investing: price is what you pay but value is what you get; the risk in investing is the risk of paying too much; anchor on what you know rather than speculation; and beware of paying too much for speculative growth. Penman puts these ideas in touch with the quantification supplied by accounting, producing practical tools for the intelligent investor. Accounting for value provides protection from paying too much for a stock and clues the investor in to the likely return from buying growth. Strikingly, the analysis finesses the need to calculate a "cost-of-capital," which often frustrates the application of modern valuation techniques. Accounting for value recasts "value" versus "growth" investing and explains such curiosities as why earnings-to-price and book-to-price ratios predict stock returns. By the end of the book, Penman has the intelligent investor thinking like an intelligent accountant, better equipped to handle the bubbles and crashes of our time. For accounting regulators, Penman also prescribes a formula for intelligent accounting reform, engaging with such controversial issues as fair value accounting.
Author | : Young-Soo Choi |
Publisher | : LAP Lambert Academic Publishing |
Total Pages | : 280 |
Release | : 2010-09 |
Genre | : |
ISBN | : 9783843357944 |
Download Residual Income-Based Equity Valuation Book in PDF, ePub and Kindle
Following the seminal theoretical work of Ohlson (1995), many researchers have tried to investigate the linear information dynamics (LID) model's validity empirically. However, empirical applications of the LID approach to residual income (RI)-based equity valuation have produced estimates of firm value that are substantially lower on average than corresponding observed market values. This book augments the Ohlson model by incorporating residual income and 'other information' intercepts into the original linear information dynamics, in order to capture the impact of the intercept terms on the residual income forecasts and firm values. I argue that the large negative bias in LID-based value estimates might be attributable to failure to deal fully with the effects of conservative accounting in projecting residual income. The main objective of the book is thus to examine whether the 'intercept-inclusive' LID model produces more reliable value estimates than the extant RI-based valuation models. I also address a potentially important issue of the different applicability under different conditions of different RI-based valuation models.
Author | : Guochang Zhang |
Publisher | : |
Total Pages | : 39 |
Release | : 2001 |
Genre | : |
ISBN | : |
Download Accounting Information, Capital Investment Decisions, and Equity Valuation Book in PDF, ePub and Kindle
This study develops an accounting-based valuation model in a setting where firms have the flexibility to expand or discontinue operations (real options). The model is used to examine the role of accounting earnings and book value in equity valuation and to explore cross-sectional differences in the behavior of the valuation function. Unlike prior studies (such as Ohlson 1995 and Feltham and Ohlson 1995) where capital investments are either unspecified or exogenously given, capital investment decisions in this model are made contingent on the firm's operating profitability and growth opportunities. Valuation requires first forming beliefs about future capital investments, and then valuing cash flows to be generated from invested assets. Current earnings and book value provide vital information both for forming beliefs about future investments and for forecasting cash flows. With real options, the valuation function emerges as convex, not linear. Specifically, equity value is an increasing and convex function of earnings, for any given book value, but it can be either increasing in, insensitive to, or decreasing in book value, depending on the firm's profitability and growth opportunity. The model leads to predictions regarding the relative importance of earnings versus book value in value determination and how this relative importance varies across firms. It also rationalizes the quot;anomalousquot; association between stock prices and negative earnings found in empirical studies (which is due to regression model misspecification). The study further shows how conservative accounting affects the characteristics of earnings and book value, and provides hypotheses regarding how accounting conservatism influences the properties of the valuation function. The predictions of the model are generally consistent with the evidence reported in empirical studies. Implications for empirical research are discussed.
Author | : Mark P. Bauman |
Publisher | : |
Total Pages | : 312 |
Release | : 1997 |
Genre | : |
ISBN | : |
Download Essays in Accounting-based Equity Valuation Book in PDF, ePub and Kindle
Author | : Guochang Zhang |
Publisher | : Springer Science & Business Media |
Total Pages | : 250 |
Release | : 2013-09-28 |
Genre | : Business & Economics |
ISBN | : 1461481600 |
Download Accounting Information and Equity Valuation Book in PDF, ePub and Kindle
The purpose of this book is to offer a more systematic and structured treatment of the research on accounting‐based valuation, with a primary focus on recent theoretical developments and the resulting empirical analyses that recognize the role of accounting information in making managerial decisions. Since its inception, valuation research in accounting has evolved primarily along an “empirically driven” path. In the absence of models constructed specifically to explain this topic, researchers have relied on economic intuition and theories from other disciplines (mainly finance and economics) as a basis for designing empirical analyses and interpreting findings. Although this literature has shed important light on the usefulness of accounting information in capital markets, it is obvious that the lack of a rigorous theoretical framework has hindered the establishment of a systematic and well‐structured literature and made it difficult to probe valuation issues in depth. More recently, however, progress has been made on the theoretical front. The two most prominent frameworks are (i) the “linear information dynamic approach” and (ii) the “real options‐based approach” which recognizes managerial uses of accounting information in the pursuit of value generation. This volume devotes its initial chapters to an evaluation of the models using the linear dynamic approach, and then provides a synthesis of the theoretical studies that adopt the real options approach and the empirical works which draw on them. The book also makes an attempt to revisit and critique existing empirical research (value-relevance and earnings-response studies) within the real options-based framework. It is hoped that the book can heighten interest in integrating theoretical and empirical research in this field, and play a role in helping this literature develop into a more structured and cohesive body of work. Value is of ultimate concern to economic decision-makers, and valuation theory should serve as a platform for studying other accounting topics. The book ends with a call for increased links of other areas of accounting research to valuation theory.
Author | : D. Eric Hirst |
Publisher | : Wiley |
Total Pages | : 80 |
Release | : 2000-11-28 |
Genre | : Business & Economics |
ISBN | : 9780943205496 |
Download Earnings Book in PDF, ePub and Kindle
Hirst and Hopkins guide analysts to a comprehension of how income statements and other disclosures can be used to assess the underlying quality and persistence of companies' economic conditions.