979 research outputs found
Implications of Components of Income Excluded from Pro Forma Earnings for Future Profitability and Equity Valuation
No full textThis study addresses three research questions relating to total exclusions, special items, and other exclusions. Are each of these pro forma exclusion components forecasting irrelevant? Are each of the exclusion components value irrelevant? Are the valuation multiples on the exclusion components justified by their ability to forecast future profitability as predicted by the Ohlson (1999) model? Findings are generally consistent with the market-inefficiency results presented in Doyle et al. (2003) . Total exclusions are valued negatively by the market despite the prediction that total exclusions will be valued positively. Valuation results also suggest that stocks with positive other exclusions are overpriced. Copyright 2007 The Authors Journal compilation (c) 2007 Blackwell Publishing Ltd.
Implications of Components of Income excluded from Pro Forma Earnings for Future Profitability and Equity Valuation
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Reliability and Relevance of Fair Values: Private Equity Investments and Investee Fundamentals
No full textWe directly test the reliability and relevance of fair values reported by listed private equity firms (LPEs), where the unit of account for fair value measurement attribute (FVM) is an investment stake in an individual investee company. FVMs are observable for multiple investment stakes, fair values are economically important, and granular data on investee economic fundamentals that should underpin fair values are available in public disclosures. We find that LPE fund managers determine valuations based on accounting-based fundamentals—equity book value and net income—that are in line with those investors derive for listed companies. Additionally, our findings suggest that LPE fund managers apply a lower valuation weight to investee net income if direct market inputs are unobservable during investment value estimation. We interpret these findings as evidence that LPE fund managers do not appear mechanically to apply market valuation weights for publicly traded investees when determining valuations of non-listed. We also document that the judgments that LPE fund managers apply when determining investee valuations appear to be perceived as reliable by their investors
Which approach to accounting for employee stock options best reflects market pricing?
No full textWe use a residual income valuation framework to compare equity valuation implications of four approaches to employee stock options (ESOs) accounting: APB 25 “recognize nothing”, SFAS 123 (revised) “recognize ESO expense”, FASB Exposure Draft “recognize and expense ESO asset” and “recognize ESO asset and liability”. Theoretical analysis shows only grant date recognition of an asset and liability, and subsequent marking-to-market of the liability, results in accounting numbers that capture the dilution effects of ESOs on current shareholder value. Out-of-sample equity market value prediction tests and in-sample comparisons of model explanatory power also support the “recognize ESO asset and liability” method
Toxicological profile for formaldehyde
Get PDF"Draft for Public Comment."Prepared by Research Triangle Institute under Contract No. 205-93-0606 to the U.S. Department of Health and Human Services, Public Health Service, Agency for Toxic Substances and Disease Registry. Chemical manager(s)/author(s): Sharon Wilbur, M. Olivia Harris, Peter R. McClure, Wayne SpooIncludes bibliographical references (p. 343-416).205-93-060
International Comparisons of Real Estate E-nformation on the Internet
Get PDFHow much information should brokers supply on a website? The Internet allows brokers to reduce the cost of providing information to potential buyers. However, brokers may risk disintermediation if they provide too much information. This paper presents a model of a broker’s choice of how much information to provide on a website. The model considers buyers’ tradeoffs between hiring a broker and gathering information on their own. It then investigates why real estate brokers in different countries provide different amounts of information on websites. Tests reveal that information provided on broker websites depends on the search cost of prospective buyers.
Has the Information Content of Quarterly Earnings Announcements Declined in the Past Three Decades?
No full text"Discussion of" Accounting for Joint Ventures and Associates in Canada, UK, and US: Do US Rules Hide Information?
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