This study uses out-of-sample equity value estimates to determine whether earnings disaggregation, imposing valuation model linear information (LIM) structure, and separate industry estimation of valuation model parameters aid in predicting contemporaneous equity values. We consider three levels...

In this study, we extend the findings of Barth, Beaver, Hand, and Landsman (1999) by providing empirical evidence that for three levels of disaggregated earnings, (1) the structure provided by the Feltham-Ohlson model aids in predicting equity market values, and (2) forecasting of equity market...

We find, as predicted, that the differential ability of accrual and cash flow components of earnings to help forecast future abnormal earnings and the persistence of the components results in the components having different valuation implications. We base our tests on Ohlson (1999) applied to...

This paper employs Ohlson's (1995, 1998) accounting based equity valuation model to structure an empirical assessment of the pricing of dividends in stock prices. We address two questions. First, to what extent does the pricing of dividends reflect Modigliani and Miller?s (1958, 1961) one-to-one...

This paper tests the sharply differing predictions that emerge in Ohlson?s (1995) model from two assumptions about other information v that is reflected in a firm?s equity market value but not in its current financial statements. We find that neither assumption cleanly fits the data. If v is...