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Our concern in the present paper is with an empirical evaluation of the relevance of published depreciation numbers. We report results of an attempt to assess the correspondence between the depreciation rates implied by published financial statements and the market-based rates implied by time...
Persistent link: https://www.econbiz.de/10009457890
Purpose: The purpose of this study is to determine distributional properties of the accumulated rate of interest when the instantaneous rate of interest evolves in terms of the Cox et al. (1985) square root process. Design/methodology/approach: The law of iterated (or double) expectations is...
Persistent link: https://www.econbiz.de/10012184365
Purpose: The purpose of this paper is to investigate whether levels-classified fair values of US banks based on SFAS 157: Fair Value Measurements, as recognised in the quarterly financial statements of the banks over the period from 2008 until 2015, have predictive value in relation to the...
Persistent link: https://www.econbiz.de/10012275754
The Garman-Ohlson structural model assumes the evolution of corporate earnings, dividends and book values are generated by a simultaneous equation system which links financial statement information to underlying equity value. However, little is known about the consistency of empirical outcomes...
Persistent link: https://www.econbiz.de/10005672409
We state an Aggregation Theorem which shows that the recursion value of equity is functionally proportional to its adaptation value. Since the recursion value of equity is equal to its book value plus the expected present value of its abnormal earnings, it follows that the adaptation value of...
Persistent link: https://www.econbiz.de/10005672473
We show here that risky asset returns generating processes stated in terms of factors which include both accounting and non-accounting based measures of risk (e.g. book to market ratios) imply, under fairly standard regularity conditions, that the Sharpe-Lintner-Black asset pricing model beta is...
Persistent link: https://www.econbiz.de/10005672513
Persistent link: https://www.econbiz.de/10005676855
We illustrate the impact that real options generally available to firms can have on the value of corporate equity, and in particular the valuation errors that are likely to arise from ignoring them. Moreover, we develop real option values in terms of the profitability and balance sheet...
Persistent link: https://www.econbiz.de/10004985660
Persistent link: https://www.econbiz.de/10012087266
Persistent link: https://www.econbiz.de/10005242410