Information Asymmetries and the Value-relevance of Cash Flow and Accounting Figures - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Information Asymmetries and the Value-relevance of Cash Flow and Accounting Figures write by Marc Steffen Rapp. This book was released on 2010. Information Asymmetries and the Value-relevance of Cash Flow and Accounting Figures available in PDF, EPUB and Kindle. While some of the modern performance measures used in managerial accounting rely on cash flow based figures others try to take advantage of the information content of accounting figures. However, whether the additional information content in the accrual components of earnings improves the internal performance measurement is an open empirical question. To shed light on this question, I examine the correlation between operating cash flows and earnings with firm's total shareholder returns. Using fixed firm effects regression methods for a large sample of German listed firms covering some 5,000 firm years, the analysis shows that generally operating cash flow and earnings are both positively correlated with total shareholder return. However, with increasing information asymmetry earnings become less correlated with the firm's stock market performance and operating cash flows dominate earnings in explaining total shareholder return (and vice versa). These results suggest that, the information content of accounting figures is only relevant in settings characterized by low information asymmetries and, thus, there is no one-size-fits-all performance measure for managerial accounting purposes. -- Accounting figures ; performance measures ; total shareholder return ; managerial accounting
The relevance of Discounted Cash Flow (DCF) and Economic Value Added (EVA) for the valuation of banks
The relevance of Discounted Cash Flow (DCF) and Economic Value Added (EVA) for the valuation of banks - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The relevance of Discounted Cash Flow (DCF) and Economic Value Added (EVA) for the valuation of banks write by Dennis Schön. This book was released on 2004-07-28. The relevance of Discounted Cash Flow (DCF) and Economic Value Added (EVA) for the valuation of banks available in PDF, EPUB and Kindle. Bachelor Thesis from the year 2003 in the subject Business economics - Investment and Finance, grade: 1,3 (A), Northumbria University (Newcastle Business School), language: English, abstract: This study investigates the underlying theories and assumptions of two modern capital market-based valuation approaches, the Discounted-Cash-Flow (DCF) and the Economic-Value-Added (EVA) approach, which are nowadays applied principally for industrial and manufacturing firms. This general examination is then transferred into a more specific investigation exploring whether these valuation concepts can be applied to the strongly regulated and more specific field of bank valuation. A questionnaire addressing bank analysts was created to analyse this question. The project indicates that the ideas of shareholder value which have been enforced over the last decade have implemented the need for a more shareholder-focused valuation. The application of DCF is basically attributed to this movement. It is revealed that this concept uses cash flow streams which depict a more realistic picture of an organization’s true earning power. Moreover, it employs a discount rate based on the capital market and thus reflecting the yield expectations of the investors. EVA, on the other hand is a relatively new concept, copyrighted in 1994 by Stern Stewart. It highlights an organization’s true economic profits. The study examines its components NOPAT, Capital and Cost of Capital, establishes a relation to DCF, points out some general limitations due to the fact that it falls back on accounting figures and critically assesses its dependence on the CAPM whose inherent assumptions of efficient markets that are not transferable into reality, might affect the valuation. The primary research undertaken finally reveals that the concepts of DCF and EVA are basically suitable to be applied to the valuation of banks. However, there are some peculiarities, primarily due to difficulties associated with the definition and measurement of debt and reinvestments which make slight adjustments in the valuation process indispensable. Nevertheless, the end result is just as effective as in other industries.
Accounting, Cash Flow and Value Relevance
Accounting, Cash Flow and Value Relevance - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Accounting, Cash Flow and Value Relevance write by Francesco Paolone. This book was released on 2020-07-29. Accounting, Cash Flow and Value Relevance available in PDF, EPUB and Kindle. 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.
Bridging the GAAP
Bridging the GAAP - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Bridging the GAAP write by Zvi Wiener. This book was released on 2012. Bridging the GAAP available in PDF, EPUB and Kindle. Bridging the GAAP: Recent Advances in Finance and Accounting lies at the intersection of the two disciplines. The readings in this volume bridge the gap between finance and accounting by looking at diverse topics in accounting and finance and by providing interesting points of view regarding their interface. Most of the chapters concentrate on the topic of fair value accounting and on the extent to which accounting numbers mirror the financial situation of the firm. This book combines new developments in the areas of theoretical and empirical finance and accounting, and emphasizes the convergence of these two disciplines to better serve researchers, investors and the general public. The papers contained in this volume will help scholars, practitioners and investors better understand the similarities and differences between these two important fields of study.
Business Analysis and Valuation
Business Analysis and Valuation - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Business Analysis and Valuation write by Sue Joy Wright. This book was released on 2014. Business Analysis and Valuation available in PDF, EPUB and Kindle. Business Analysis and Valuation has been developed specifically for students undertaking accounting Valuation subjects. With a significant number of case studies exploring various issues in this field, including a running chapter example, it offers a practical and in-depth approach. This second edition of the Palepu text has been revitalised with all new Australian content in parts 1-3, making this edition predominantly local, while still retaining a selection of the much admired and rigorous Harvard case studies in part 4. Retaining the same author team, this new edition presents the field of valuation accounting in the Australian context in a clear, logical and thorough manner.
