Investigating the relationship between market values and accounting numbers for 30 selected Australian listed companies
In capital market research (CMR) studies of the value relevance of accounting numbers are founded upon the concept that, in equilibrium, the book values are equal to or have some long-term relationship with the market value and that market returns are related to book returns.This thesis seeks to resolve a gap in the CMR by examining 30 selected individual firms listed on the Australian stock market during the period 1950 to 2004, using equilibrium correction modelling techniques. Even these limited prior works used cross-sectional techniques rather than the long-run, time-series, analysis used in this study. Moreover, dynamic analysis in the CMR has tended to focus on indexes or portfolio data rather than using firm-specific case study data of the type modelled here. No prior research has taken this approach using Australian data.The results of this thesis indicated that an equilibrium correction relationship between market values and book values for firms listed on the Australian Stock Exchange (ASX) could be determined by using accounting and macroeconomic regressors. The findings of the thesis were consistent with the literature in terms of the variables suggested and important in the firm's valuation from the three main approaches, the analysts (industry) approach, the finance and accounting theory (textbook) approach and the CMR literature approach. The earnings, dividends and book value variables are significant in their relationships with the firm's market values. The models constructed were typically more informative and had an increased forecasting performance compared with the a priori models tested, based on theory and the literature.
Year of publication: |
2007
|
---|---|
Authors: | Clout, Victoria Jane |
Publisher: |
Queensland University of Technology |
Subject: | capital market research | value relevance | dynamic modelling equilibrium correction | error correction models | forecasting | sufficiency |
Saved in:
freely available
Type of publication: | Book / Working Paper |
---|---|
Type of publication (narrower categories): | Thesis |
Notes: | Clout, Victoria Jane (2007) Investigating the relationship between market values and accounting numbers for 30 selected Australian listed companies. PhD thesis, Queensland University of Technology. QUT Business School; School of Accountancy |
Source: | BASE |
Persistent link: https://www.econbiz.de/10009437796
Saved in favorites
Similar items by subject
-
Suwardi, Eko, (2004)
-
Alexander, David R., (2012)
-
Unraveling the existence of the necessity and sufficiency of accounting information
Agbodjo, Serge, (2022)
- More ...