We investigate the co-movement of stock prices and intrinsic value estimates focusing on the estimation of risk. We apply risk measurements based on a) market and b) accounting data. We find that price and value co-move from 1983 to 2014 on an index-level using accounting-based risk measurement...

While non-GAAP reporting is under debate as managers might opportunistically inflate non-GAAP earnings, analytical research by Hirshleifer and Teoh (2003) proposes that limited attention causes mispricing when inappropriate items are excluded from non-GAAP earnings but will be reversed...

We provide a comprehensive overview of the findings regarding the causes of financial restatements in the US. Acknowledging that restatements may derive from intentional and unintentional misreporting, we assign the findings to one of three pillars: i) expected benefits, ii) expected costs and...

I implement the accounting-based risk measurement approach in equity valuation proposed by Nekrasov and Shroff (2009) for the German market using monthly data from 2002 to 2019. The empirical analysis shows that value estimates based on this risk measurement approach produce a significantly...