Download or read book Life Cycle Stage Effects on the Incremental Information Content of Earnings and Cash Flows written by Ervin L. Black and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Previous studies cross-sectionally pooled heterogeneous firms to examine the information content of earnings and cash flow measures. This study extends prior research; and is the first to examine the corporate life-cycle effects on the informativeness of earnings (NI), operating cash flows (CFO), financing cash flows (CFF), and investing cash flows (CFI). The life-cycle concept is an appealing economic context which allows for a relatively more homogenous study of these information content relationships. It is a concept used frequently in academic research and the financial press, because it captures a set of financial characteristics and strategies for firms in a particular life-cycle stage. This study examines both the informativeness of earnings and cash flow measures in each of four life-cycle stages: Start- up, Growth, Mature, and Decline. Hypotheses are developed predicting that earnings and operating cash flows contain incremental information content in life-cycle stages when a firm's assets in place are a major component of firm value. Financing cash flows and investing cash flows are expected to be incrementally informative during stages characterized by growth or uncertainty. The results are consistent with the hypothesis that neither NI, nor CFO are incrementally informative in the start-up stage, characterized by few assets in place. When there are relatively more assets in place in the growth, mature, and decline stages; however, the results support the hypothesis that NI and CFO contain incremental information. Hypotheses regarding CFF and CFI are generally supported. Results support the incremental informativeness of CFF in the growth, mature, and decline stages; but not in the start-up stage. CFI is informative in all life-cycle stages. These results provide support for the usefulness of the cash flow statement required by FAS 95.

Download or read book Life cycle Stage Effects on the Information Content of Earnings and Cash Flows written by Ervin L. Black and published by . This book was released on 1995 with total page 206 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Incremental Information Content of Earnings written by Ashiq Ali and published by . This book was released on 1992 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Accounting Cash Flow and Value Relevance written by Francesco Paolone and published by Springer Nature. This book was released on 2020-07-29 with total page 116 pages. Available in PDF, EPUB and Kindle. Book excerpt: Although the concept “Cash is King” is today widely recognized, the cash flow statement was rather neglected until the EU accounting regulators discovered its relevance in explaining the real value of the business. This book investigates the value relevance of the operating cash flow as reported under the International Financial Reporting Standards (IAS/IFRS) for the largest European listed companies and US listed companies in the past recent years. Using the model based on the valuation theory developed by Ohlson, which measures the market value of equity as a function of accounting variables, the author concludes that operating cash flow represents a significant variable in determining the value relevance of the largest European and US listed companies. These findings provide siginificant implications for standard setters and support the continued requirements for disclosure of cash flow information under IAS 7.

Download or read book Advances in Business and Management Forecasting written by Kenneth D. Lawrence and published by Emerald Group Publishing. This book was released on 2010-08-26 with total page 253 pages. Available in PDF, EPUB and Kindle. Book excerpt: Presents advanced studies in the application of forecasting methodologies to such areas as sales, marketing, and strategic decision making. This title covers such topics as: sales and marketing, forecasting, new product forecasting, judgmentally-based forecasting, the application of surveys to forecasting, and more.

Download or read book Corporate Payout Policy written by Harry DeAngelo and published by Now Publishers Inc. This book was released on 2009 with total page 215 pages. Available in PDF, EPUB and Kindle. Book excerpt: Corporate Payout Policy synthesizes the academic research on payout policy and explains "how much, when, and how". That is (i) the overall value of payouts over the life of the enterprise, (ii) the time profile of a firm's payouts across periods, and (iii) the form of those payouts. The authors conclude that today's theory does a good job of explaining the general features of corporate payout policies, but some important gaps remain. So while our emphasis is to clarify "what we know" about payout policy, the authors also identify a number of interesting unresolved questions for future research. Corporate Payout Policy discusses potential influences on corporate payout policy including managerial use of payouts to signal future earnings to outside investors, individuals' behavioral biases that lead to sentiment-based demands for distributions, the desire of large block stockholders to maintain corporate control, and personal tax incentives to defer payouts. The authors highlight four important "carry-away" points: the literature's focus on whether repurchases will (or should) drive out dividends is misplaced because it implicitly assumes that a single payout vehicle is optimal; extant empirical evidence is strongly incompatible with the notion that the primary purpose of dividends is to signal managers' views of future earnings to outside investors; over-confidence on the part of managers is potentially a first-order determinant of payout policy because it induces them to over-retain resources to invest in dubious projects and so behavioral biases may, in fact, turn out to be more important than agency costs in explaining why investors pressure firms to accelerate payouts; the influence of controlling stockholders on payout policy --- particularly in non-U.S. firms, where controlling stockholders are common --- is a promising area for future research. Corporate Payout Policy is required reading for both researchers and practitioners interested in understanding this central topic in corporate finance and governance.

Download or read book The Incremental Information Content of Earnings Funds Flow and Cash Flow written by Ashiq Ali and published by . This book was released on 1994 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Distortion Effects and Extreme Observations in Empirical Research written by Cynthia R. Wilson and published by . This book was released on 1996 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Papers in ITJEMAST 11 15 2020 written by and published by International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies. This book was released on with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: International Transaction Journal of Engineering, Management, & Applied Sciences & Technologies publishes a wide spectrum of research and technical articles as well as reviews, experiments, experiences, modelings, simulations, designs, and innovations from engineering, sciences, life sciences, and related disciplines as well as interdisciplinary/cross-disciplinary/multidisciplinary subjects. Original work is required. Article submitted must not be under consideration of other publishers for publications.

Download or read book The Economics and Politics of Accounting written by Christian Leuz and published by OUP Oxford. This book was released on 2005-09-15 with total page 434 pages. Available in PDF, EPUB and Kindle. Book excerpt: Accounting and the role of accountants has permeated the modern societies. For the most part we have accepted the impartiality and objectivity of accounting and not recognized how accounting systems are embedded in a country's economic and legal framework, much of which is in turn shaped by political processes. This web of interactions results in complex economic and political questions which require accounting researchers to focus on several related trends: information economics, regulatory economics, sociology, and political science. Although considerable progress has been made in the field of accounting, many fundamental questions are still subject to debate. In this book leading international scholars address a number of important questions: · What is the role of accounting in security valuation, decision making and contracting? · What can we learn from economics-based research in accounting? · What is the role of auditing and how can accounting standards be enforced? · What are the cost and benefits of accounting and disclosure regulation? · What is the role of accounting in society? · How does lobbying affect the political process of standard setting? · What are the consequences of the internationalization of standard setting? This seminal book will be of interest to academics, researchers, and graduate students of Accounting, Finance, Business Studies, Sociology, and Political Economy.

Download or read book Creative Cash Flow Reporting written by Charles W. Mulford and published by John Wiley & Sons. This book was released on 2005-05-13 with total page 432 pages. Available in PDF, EPUB and Kindle. Book excerpt: Successful methodology for identifying earnings-related reporting indiscretions Creative Cash Flow Reporting and Analysis capitalizes on current concerns with misleading financial reporting on misleading financial reporting. It identifies the common steps used to yield misleading cash flow amounts, demonstrates how to adjust the cash flow statement for more effective analysis, and how to use adjusted operating cash flow to uncover earnings that have been misreported using aggressive or fraudulent accounting practices. Charles W. Mulford, PhD, CPA (Atlanta, GA), is the coauthor of three books, including the bestselling The Financial Numbers Game: Identifying Creative Accounting Practices. Eugene E. Comiskey, PhD, CPA, CMA (Atlanta, GA), is the coauthor of the bestselling The Financial Numbers Game: Identifying Creative Accounting Practices.

Download or read book The Analysis and Use of Financial Statements written by Gerald I. White and published by John Wiley & Sons. This book was released on 2002-12-30 with total page 786 pages. Available in PDF, EPUB and Kindle. Book excerpt: Accounting Standards (US and International) have been updated to reflect the latest pronouncements. * An increased international focus with more coverage of IASC and non-US GAAPs and more non-US examples.

Download or read book Reconciling Growth and Persistence as Explanations for Accrual Mispricing written by Paul Hribar and published by . This book was released on 2009 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the circumstances under which a growth explanation or a persistence explanation is a more likely explanation for accrual mispricing and whether accruals or cash from operations is a better measure of the mispricing. We hypothesize that mispricing of growth and a fixation on earnings are both descriptive of the accrual mispricing, but that they affect prices differently depending on where the firm is in its life cycle. We also hypothesize that the mispricing will have a stronger association with accruals or cash flows depending on which explanation drives the mispricing. Our results show that the orthogonal information in accruals is more related to growth characteristics, while the orthogonal information in cash flows is related to earnings persistence. Furthermore, in the growth stage, information in accruals is mispriced to a greater extent than the information in cash flows. Collectively, our results suggest that the investment-based explanation for accrual mispricing dominates in the growth stage and is best measured using accruals (and not operating cash flows). In contrast, the persistence explanation for accrual mispricing is more descriptively valid at maturity and decline, and the information contained in operating cash flows subsumes the information contained in accruals regarding earnings persistence.

Download or read book Valuation Approaches and Metrics written by Aswath Damodaran and published by Now Publishers Inc. This book was released on 2005 with total page 102 pages. Available in PDF, EPUB and Kindle. Book excerpt: Valuation lies at the heart of much of what we do in finance, whether it is the study of market efficiency and questions about corporate governance or the comparison of different investment decision rules in capital budgeting. In this paper, we consider the theory and evidence on valuation approaches. We begin by surveying the literature on discounted cash flow valuation models, ranging from the first mentions of the dividend discount model to value stocks to the use of excess return models in more recent years. In the second part of the paper, we examine relative valuation models and, in particular, the use of multiples and comparables in valuation and evaluate whether relative valuation models yield more or less precise estimates of value than discounted cash flow models. In the final part of the paper, we set the stage for further research in valuation by noting the estimation challenges we face as companies globalize and become exposed to risk in multiple countries.

Download or read book Applied Corporate Finance written by Aswath Damodaran and published by John Wiley & Sons. This book was released on 2014-10-27 with total page 663 pages. Available in PDF, EPUB and Kindle. Book excerpt: Aswath Damodaran, distinguished author, Professor of Finance, and David Margolis, Teaching Fellow at the NYU Stern School of Business, has delivered the newest edition of Applied Corporate Finance. This readable text provides the practical advice students and practitioners need rather than a sole concentration on debate theory, assumptions, or models. Like no other text of its kind, Applied Corporate Finance, 4th Edition applies corporate finance to real companies. It now contains six real-world core companies to study and follow. Business decisions are classified for students into three groups: investment, financing, and dividend decisions.

Download or read book Damodaran on Valuation written by Aswath Damodaran and published by John Wiley & Sons. This book was released on 2016-02-08 with total page 698 pages. Available in PDF, EPUB and Kindle. Book excerpt: "Aswath Damodaran is simply the best valuation teacher around. If you are interested in the theory or practice of valuation, you should have Damodaran on Valuation on your bookshelf. You can bet that I do." -- Michael J. Mauboussin, Chief Investment Strategist, Legg Mason Capital Management and author of More Than You Know: Finding Financial Wisdom in Unconventional Places In order to be a successful CEO, corporate strategist, or analyst, understanding the valuation process is a necessity. The second edition of Damodaran on Valuation stands out as the most reliable book for answering many of today?s critical valuation questions. Completely revised and updated, this edition is the ideal book on valuation for CEOs and corporate strategists. You'll gain an understanding of the vitality of today?s valuation models and develop the acumen needed for the most complex and subtle valuation scenarios you will face.

Download or read book A Practical Guide for Startup Valuation written by Sinem Derindere Köseoğlu and published by Springer Nature. This book was released on 2023-09-25 with total page 307 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book sheds new light on the most important contemporary and emerging startup valuation topics. Drawing on the first-hand professional experience of practitioners, professionals, and startup experts from various fields of finance, combined with a sound academic foundation, it offers a practical guide to startup valuation and presents applications, practical examples, and case studies of real startup ecosystems. The book discusses pressing questions, such as: Why are startups in California are higher valued than those in New York? Or why do startups based in London receive higher valuations than those in Paris, Berlin, or Milan, even when they are based in similarly-sized economies, share the same industries, and often even have the same investors? Answering these questions, the authors present key topics, such as hierarchical and segmented approaches to startup valuation, business plans, and sensitivity analysis, many methods such as venture capital valuation, first Chicago valuation, scorecard valuation, Dave Berkus valuation, risk factor summation valuation, and discounted cash flow valuation, in addition to business valuation by data envelopment analysis and real options analysis, as well as critical conceptual issues in the valuation such as expected returns of the venture capital and price versus value concepts, among others. The book will help angel investors, venture capitalists, institutional investors, crowd-based fractional investors, and investment fund professionals understand how to use basic and advanced analytics for a more precise valuation that helps them craft their long-term capital-raising strategy and keep their funding requests in perspective. It will also appeal to students and scholars of finance and business interested in a better understanding of startup valuation.