Overview
- Provides a framework for understanding the relation between accounting information and equity value/returns
- Integrates theory and empirical analysis
- Demonstrates the relevance of valuation research to investors and accounting standard setters (professionals and policymakers) ?
Part of the book series: Springer Series in Accounting Scholarship (KLAS, volume 6)
Access this book
Tax calculation will be finalised at checkout
Other ways to access
Table of contents (13 chapters)
Keywords
About this book
The purpose of this book is to offer a more systematic and structured treatment of the research on accountingâbased 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 âempirically drivenâ 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 wellâstructured 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 âlinear information dynamic approachâ and (ii) the âreal optionsâbased approachâ 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.
Authors and Affiliations
About the author
Bibliographic Information
Book Title: Accounting Information and Equity Valuation
Book Subtitle: Theory, Evidence, and Applications
Authors: Guochang Zhang
Series Title: Springer Series in Accounting Scholarship
DOI: https://doi.org/10.1007/978-1-4614-8160-7
Publisher: Springer New York, NY
eBook Packages: Business and Economics, Business and Management (R0)
Copyright Information: Springer Science+Business Media New York 2014
Hardcover ISBN: 978-1-4614-8159-1Published: 29 September 2013
Softcover ISBN: 978-1-4939-4344-9Published: 23 August 2016
eBook ISBN: 978-1-4614-8160-7Published: 28 September 2013
Series ISSN: 1572-0284
Edition Number: 1
Number of Pages: XXIV, 233
Number of Illustrations: 13 b/w illustrations
Topics: Accounting/Auditing, Finance, general