Detail Conservatism, growth and the role of accounting numbers in the equity valuation process Bibliografi Author: Monahan, Steven J. ; Landsman, Wayne (Advisor) Topik: BUSINESS ADMINISTRATION; ACCOUNTING Bahasa: (EN )    ISBN: 0-599-45064-9     Penerbit: THE UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL     Tahun Terbit: 1999     Jenis: Theses - Dissertation Fulltext: 9943242.pdf (0.0B; 8 download) Abstract This study demonstrates that growth is an important determinant of the impact that conservative accounting choices have on the role of accounting numbers in the equity valuation process. In particular, I evaluate the effect of conservative accounting for research and development (R&D) and past growth in R&D on the relation between aggregate earnings and contemporaneous stock return and the usefulness of earnings and equity book values for developing estimates of equity market value. I find that the capitalization of R&D improves the value relevance of aggregate earnings only for firms with high past growth in R&D. Moreover, the deleterious effects of the conservative treatment of R&D on the value relevance of estimates of equity market value based on the discounted residual income model are increasing in the level of past growth in R&D. These results imply that changes in GAAP aimed at reducing the level of conservatism will affect firms differently. Hence, the benefits of changing accounting regimes will likely be less encompassing than the ancillary costs. These results also provide additional insights regarding the usefulness of the discounted residual income valuation model as a tool for estimating firms' equity market values. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Lihat Sejarah Pengadaan  Konversi Metadata   Kembali

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