Download Accounting Information and Equity Valuation: Theory, by Guochang Zhang PDF

By Guochang Zhang

The goal of this booklet is to provide a extra systematic and established remedy of the learn on accounting‐based valuation, with a major concentrate on contemporary theoretical advancements and the ensuing empirical analyses that realize the position of accounting details in making managerial decisions.

Since its inception, valuation examine in accounting has developed essentially alongside an “empirically pushed” course. within the absence of versions developed particularly to give an explanation for this subject, researchers have depended on fiscal instinct and theories from different disciplines (mainly finance and economics) as a foundation for designing empirical analyses and analyzing findings. even if this literature has shed vital mild at the usefulness of accounting details in capital markets, it's seen that the shortcoming of a rigorous theoretical framework has hindered the institution of a scientific and well‐structured literature and made it tough to probe valuation concerns extensive.

More lately, notwithstanding, growth has been made at the theoretical entrance. the 2 such a lot renowned frameworks are (i) the “linear details dynamic procedure” and (ii) the “real options‐based method” which acknowledges managerial makes use of of accounting details within the pursuit of price iteration. This quantity devotes its preliminary chapters to an evaluate of the types utilizing the linear dynamic procedure, after which presents a synthesis of the theoretical reports that undertake the genuine ideas process and the empirical works which draw on them. The ebook additionally attempts to revisit and critique current empirical examine (value-relevance and earnings-response experiences) in the actual options-based framework. it really is was hoping that the e-book can heighten curiosity in integrating theoretical and empirical study during this box, and play a job in aiding this literature become a extra based and cohesive physique of labor.

Value is of final hindrance to fiscal decision-makers, and valuation concept may still function a platform for learning different accounting themes. The e-book ends with a decision for elevated hyperlinks of different parts of accounting examine to valuation theory.

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Kothari, S. P. (2001). Capital markets research in accounting. Journal of Accounting and Economics, 31(1–3), 105–231. , & Lys, T. (2000). The Ohlson model: Contributions to valuation theory, limitations, and empirical applications. Journal of Accounting, Auditing, and Finance, 15, 337–367. , & Keefe, T. O. (2001). Reconciling value estimates from the discounted cash flow model and the residual income model. Contemporary Accounting Research, 18(2), 311–335. Marshall, A. (1890). Principles of economics.

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P. (2001). Capital markets research in accounting. Journal of Accounting and Economics, 31(1–3), 105–231. , & Lys, T. (2000). The Ohlson model: Contributions to valuation theory, limitations, and empirical applications. Journal of Accounting, Auditing, and Finance, 15, 337–367. , & Keefe, T. O. (2001). Reconciling value estimates from the discounted cash flow model and the residual income model. Contemporary Accounting Research, 18(2), 311–335. Marshall, A. (1890). Principles of economics. London: The Macmillan.

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