Log in

Relevant bibliographies by topics / Residual income valuation model

Contents

Journal articles
Dissertations / Theses
Books
Book chapters
Conference papers
Reports

Academic literature on the topic 'Residual income valuation model'

Author: Grafiati

Published: 4 June 2021

Last updated: 25 April 2022

Create a spot-on reference in APA, MLA, Chicago, Harvard, and other styles

Select a source type:

Consult the lists of relevant articles, books, theses, conference reports, and other scholarly sources on the topic 'Residual income valuation model.'

Next to every source in the list of references, there is an 'Add to bibliography' button. Press on it, and we will generate automatically the bibliographic reference to the chosen work in the citation style you need: APA, MLA, Harvard, Chicago, Vancouver, etc.

You can also download the full text of the academic publication as pdf and read online its abstract whenever available in the metadata.

Journal articles on the topic "Residual income valuation model"

1

Ashton, David, Ken Peasnell, and Pengguo Wang. "Residual Income Valuation Models and Inflation." European Accounting Review 20, no. 3 (September 2011): 459–83. http://dx.doi.org/10.1080/09638180.2010.493661.

Full text

APA, Harvard, Vancouver, ISO, and other styles

2

Dechow, Patricia M., Amy P. Hutton, and Richard G. Sloan. "An empirical assessment of the residual income valuation model." Journal of Accounting and Economics 26, no. 1-3 (January 1999): 1–34. http://dx.doi.org/10.1016/s0165-4101(98)00049-4.

Full text

APA, Harvard, Vancouver, ISO, and other styles

3

Lopes, Alexsandro Broedel. "Valuation properties of accounting numbers in Brazil." Corporate Ownership and Control 1, no. 3 (2004): 31–36. http://dx.doi.org/10.22495/cocv1i3p3.

Full text

Abstract:

This work investigates the valuation properties of accounting numbers in Brazil under three traditional frameworks: earnings capitalization, book value of equity and residual income. The sample was selected from companies traded at the São Paulo Stock Exchange (BOVESPA) from 1995 to 1999, dividing the sample in two groups: companies with preferred and with common shares. My results show that the earnings capitalization model did not perform well for common shares and have a better performance for preferred shares because of the mandatory dividend distribution as a percentage of net income in Brazil and because earnings have no use as information asymmetry reducers in Brazil. The book value model performed better for common shares while residual income had a comparable performance and seems to be the dominant accounting-based valuation model for common shares. For preferred shares the residual income model performs better. The residual income term alone presents no significant difference for the two sets of companies. For both set of companies accounting income did not incorporated economic income.

APA, Harvard, Vancouver, ISO, and other styles

4

Myers, James N. "Implementing Residual Income Valuation With Linear Information Dynamics." Accounting Review 74, no. 1 (January 1, 1999): 1–28. http://dx.doi.org/10.2308/accr.1999.74.1.1.

Full text

Abstract:

Residual income (RI) valuation is a method of estimating firm value based on expected future accounting numbers. This study documents the necessity of using linear information models (LIMs) of the time series of accounting numbers in valuation. I find that recent studies that make ad hoc modifications to the LIMs contain internal inconsistencies and violate the no arbitrage assumption. I outline a method for modifying the LIMs while preserving internal consistency. I also find that when estimated as a time series, the LIMs of Ohlson (1995), and Feltham and Ohlson (1995) provide value estimates no better than book value alone. By comparing the implied price coefficients to coefficients from a price level regression, I find that the models imply inefficient weightings on the accounting numbers. Furthermore, the median conservatism parameter of Feltham and Ohlson (1995) is significantly negative, contrary to the model's prediction, for even the most conservative firms. To explain these failures, I estimate a LIM from a more carefully modeled accounting system that provides two parameters of conservatism (the income parameter and the book value parameter). However, this model also fails to capture the true stochastic relationship among accounting variables. More complex models tend to provide noisier estimates of firm value than more parsimonious models.

APA, Harvard, Vancouver, ISO, and other styles

5

Ho, Kung-Cheng, Shih-Cheng Lee, Chien-Ting Lin, and Min-Teh Yu. "A Comparative Analysis of Accounting-Based Valuation Models." Journal of Accounting, Auditing & Finance 32, no. 4 (January 28, 2016): 561–75. http://dx.doi.org/10.1177/0148558x15623043.

Full text

Abstract:

We empirically compare the reliability of the dividend (DIV) model, the residual income valuation (CT, GLS) model, and the abnormal earnings growth (OJ) model. We find that valuation estimates from the OJ model are generally more reliable than those from the other three models, because the residual income valuation model anchored by book value gets off to a poor start when compared with the OJ model led by capitalized next-year earnings. We adopt a 34-year sample covering from 1985 to 2013 to compare the reliability of valuation estimates via their means of absolute pricing errors ( MAPE) and corresponding t statistics. We further use the switching regression of Barrios and Blanco to show that the average probability of OJ valuation estimates is greater in explaining stock prices than the DIV, CT, and GLS models. In addition, our finding that the OJ model yields more reliable estimates is robust to analysts-based and model-based earnings measures.

APA, Harvard, Vancouver, ISO, and other styles

6

Cheng, Qiang. "What Determines Residual Income?" Accounting Review 80, no. 1 (January 1, 2005): 85–112. http://dx.doi.org/10.2308/accr.2005.80.1.85.

Full text

Abstract:

This paper investigates the determinants of residual income scaled by book value of equity, i.e., abnormal return on equity (ROE), by analyzing the impact of value-creation (economic rents) and value-recording (conservative accounting) processes on abnormal ROE. I rely on economic theories to characterize economic rents and develop an empirical measure—the conservative accounting factor—to capture the effect of conservative accounting. As expected, industry abnormal ROE increases with industry concentration, industry-level barriers to entry, and industry conservative accounting factors. Also as expected, the difference between firm and industry abnormal ROE increases with market share, firm size, firm-level barriers to entry, and firm conservative accounting factors. Integrating these determinants into the residual income valuation model significantly increases its explanatory power for the variation in the market-to-book ratio.

APA, Harvard, Vancouver, ISO, and other styles

7

Ashbaugh, Hollis, and Per Olsson. "An Exploratory Study of the Valuation Properties of Cross-Listed Firms' IAS and U.S. GAAP Earnings and Book Values." Accounting Review 77, no. 1 (January 1, 2002): 107–26. http://dx.doi.org/10.2308/accr.2002.77.1.107.

Full text

Abstract:

Despite the increasing integration of global capital markets, there is little evidence on the valuation properties of cross-listed, non-U.S. firms' accounting variables. We use the relative performance of the earnings capitalization, the book value, and the residual income valuation models to explore the valuation properties of International Accounting Standards and U.S. Generally Accepted Accounting Principles earnings and book values reported by non-U.S., cross-listed firms trading in a common equity market. Using non-U.S./non-U.K. firms whose shares trade on the International Stock Exchange Automated Quotation system in London, we find that the earnings capitalization model is the dominant accounting-based valuation model when crosslisted firms report under International Accounting Standards. In contrast, we find that when cross-listed firms report under U.S. Generally Accepted Accounting Principles, the residual income model is the dominant accountingbased valuation model. Our exploratory study provides insights into the valuation implications of allowing a dual reporting system for foreign registrants trading in a common equity market.

APA, Harvard, Vancouver, ISO, and other styles

8

Kjærland, Frode. "Simple valuation of electric utilities – a comparison of the residual income model and a real options approach." Investment Management and Financial Innovations 13, no. 2 (June 3, 2016): 53–64. http://dx.doi.org/10.21511/imfi.13(2).2016.06.

Full text

Abstract:

Since deregulation of the energy market in Norway, there has been a number of mergers and acquisitions of electric utilities. In all these transactions, the companies have been valued. Many of the transactions have sparked significant controversy (by politicians, consultants and others) who claim that the companies have been sold too cheaply, especially concerning hydropower generating companies. How can business valuation of these enterprises be explained? Real option theory is, in this study, applied in order to explain the value beyond a traditional approach. The residual income model proposed by Feltham and Ohlson (1995) is considered. The empirical analysis shows that an enhancement in explanatory power of 100% is brought about through the introduction of independent variables based on real option theory. This supports the use of real options in helping to explain values in this industry

APA, Harvard, Vancouver, ISO, and other styles

9

Gounder, Chitra Gunshekhar, and M. Venkateshwarlu. "Bank Valuation Models – A Comparative Analysis." Accounting and Finance Research 6, no. 3 (August 8, 2017): 116. http://dx.doi.org/10.5430/afr.v6n3p116.

Full text

Abstract:

The Bank valuation model was designed based on objective to fit the most applicable valuation model for banks to help in forecasting bank specific decision and also forecast the market value of share. First study the accuracy and explanatory value of the value estimates from the residual income model compared to the estimates from the Relative valuation model for banks. Empirical evidence suggests that the residual income model is superior to the relative valuation model when it comes to measuring bank shareholder value. The results of the comparison suggest that value estimates from the residual income model are even more reliable for banks. On this basis, we conclude that residual income is an appropriate value estimate for the shareholder value of banks. There was positive significant relationship identified between the intrinsic value of bank share determined by RIV model and Market price of share in all the cases by performing correlation and Regression study. This study will be useful for forecasting the possible changes in market price. It was identified that determinants vary as per the working and regulatory condition as determinants impacting private, public and Indian banks were not similar so panel regression model will vary for each cases. It was also identified that Public Sector Bank in India shows more positive progressive trend as compared to private Sector Bank even after the fact that public Sector Bank has higher regulatory restriction as compared to Private Sector banks. This research will serve very useful for the banker to plan and take decision regarding shareholder value creation by implementing proper valuation model for getting appropriate value estimate and also adopting proper internal performance measure for having accurate and regular check on the process of value creation.

APA, Harvard, Vancouver, ISO, and other styles

10

Yee, Kenton K. "Opportunities Knocking: Residual Income Valuation of an Adaptive Firm." Journal of Accounting, Auditing & Finance 15, no. 3 (July 2000): 225–66. http://dx.doi.org/10.1177/0148558x0001500303.

Full text

Abstract:

Maintaining a competitive edge requires a firm to replace deteriorating business lines with new projects. Accordingly, part of a firm's value resides in its ability to exploit new opportunities. This paper incorporates adaptation into Ohlson's residual income valuation framework and obtains an adaptation-adjusted valuation formula. Although parsimoniously cast, the model makes two predictions that are consistent with phenomena reported in the empirical literature: earnings convexity and complementarity. Moreover, the Appendix introduces an Equivalence Theorem relating Modigliani-Miller dividend invariance, complementarity, and convexity.

APA, Harvard, Vancouver, ISO, and other styles

More sources

Dissertations / Theses on the topic "Residual income valuation model"

1

Cheng, Qiang. "Essays on the residual income valuation model /." Ann Arbor, MI : UMI, 2003. http://aleph.unisg.ch/hsgscan/hm00095739.pdf.

Full text

APA, Harvard, Vancouver, ISO, and other styles

2

Quinta, André Filipe Rodrigues. "Contabilidade e avaliação de empresas : aplicação prática do residual income model." Master's thesis, Instituto Superior de Economia e Gestão, 2018. http://hdl.handle.net/10400.5/17766.

Full text

Abstract:

Mestrado em Contabilidade, Fiscalidade e Finanças Empresariais
O presente trabalho tem como principal objetivo demonstrar a utilização do Residual Income Model (RIM). O trabalho é desenvolvido tendo uma abordagem teórica e prática da aplicação do Residual Income Model, sendo constituído pelo enquadramento teórico do modelo e de avaliação de empresas, bem como por um business case de aplicação prática do modelo à Airbus. O segundo objetivo é comparar a utilização do RIM com uma das metodologias mais aceites na avaliação de empresas, o Discounted Free Cash Flow to Equity (DFCFE). O caso é assim resolvido pelos dois modelos, o RIM e o DFCFE, de forma a comparar os procedimentos e os resultados obtidos por cada modelo. Para a conceção do business case foram utilizados unicamente dados reais, disponíveis publicamente, e está estruturado de forma a permitir diferentes abordagens e conclusões. O intervalo de preços obtido representa um desvio face à cotação no período de referência de 33% para o RIM e -16% para o DFCFE. Os resultados expõem a dificuldade de implementar os mesmos pressupostos para ambos os modelos, que podem ser influenciados tanto pelos dados considerados como pelos procedimentos utilizados para o forecast, nomeadamente no que diz respeito ao grau de detalhe necessário para os modelos. Ao mesmo tempo, os valores obtidos servem referência de intervalo de preço para o que poderá ser o valor justo da ação da Airbus.
The current project aims to demonstrate the application of the Residual Income Model. The project is based both on a theoretical and practical approach, consisting of a framework regarding the model itself and enterprise valuation, as well as a business case with the practical application of the model to Airbus. The second objective is to compare the model with one of the most accepted methods, the Discounted Free Cash Flow to Equity. Therefore, the case is solved by using two different approaches, the Residual Income Model and the Discounted Free Cash Flow to Equity, in order to compare the procedures and obtained results through each model. For the business case conception, only real and publicly available data was used, and it is structured to allow different approaches and conclusions. The obtained price range represents a variance from the price per share at the reference date of 33% through RIM and -16% through DFCFE. The results disclose the difficulty of implementing the same assumptions for both models, which can be influenced both by the methods used for the forecast as by the considered data, specifically to what regards the degree of detail required for the models. At the same time, the results can serve as a reference for the price range of what might be the fair price of Airbus' shares.
info:eu-repo/semantics/publishedVersion

APA, Harvard, Vancouver, ISO, and other styles

3

Schoon, Natalie. "Residual income models and the valuation of conventional and Islamic banks." Thesis, University of Surrey, 2005. http://epubs.surrey.ac.uk/596/.

Full text

APA, Harvard, Vancouver, ISO, and other styles

4

Brandt, Oskar, and Rickard Persson. "The relationship between stock price, book value and residual income: A panel error correction approach." Thesis, Uppsala universitet, Statistiska institutionen, 2015. http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-254344.

Full text

Abstract:

In this paper we examine the short and long-term relations between stock price, book value and residual income. We employ a panel error correction model, estimated with Engle & Granger’s (1987) two-step procedure and the single equation methodology. The models are estimated with FE-OLS and the MG-estimator. We find that stock prices adjust previous periods equilibrium error. Further, we find that book value has short and long-term effects on stock prices. Finally, this paper finds mixed results regarding residual incomes impact on stock prices. The MG-estimator finds evidence for a short-term relationship, while the FE-OLS provides insignificant or weak support for short-term effects. FE-OLS and MG-estimator find insignificant or weak support regarding residual incomes long-term effects.

APA, Harvard, Vancouver, ISO, and other styles

5

Lehmann, Christopher, and Alexander Alfredsson. "Intrinsic Equity Valuation : An Emprical Assessment of Model Accuracy." Thesis, Södertörns högskola, Institutionen för samhällsvetenskaper, 2016. http://urn.kb.se/resolve?urn=urn:nbn:se:sh:diva-30377.

Full text

Abstract:

The discounted cash flow model and relative valuation models are ever-increasingly prevalent in today’s investment-heavy environment. In other words, theoretically inferior models are used in practice. It is this paradox that has lead us to compare the discounted cash flow model (DCFM), discounted dividend model (DDM), residual income-based model (RIVM) and the abnormal earnings growth model (AEGM) and their relative accuracy to observed stockprices. Adding to previous research, we investigate their performance in relation to the OMX30 index. What is more, we test how the performance of each model is affected by an extension of the forecast horizon. The study finds that AEGM outperforms the other models, both before and after extending the horizon. Our analysis was conducted by looking at accuracy, spread and the inherent speculative nature of each model. Taking all this into account, RIVM outperforms the other models. In this sense, one can question the rationale behind investor’s decision to primarily use the discounted cash flow model in equity valuation.

APA, Harvard, Vancouver, ISO, and other styles

6

Haboub, Ahmad. "Essays on equity valuation and accounting conservatism for insurance companies." Thesis, Brunel University, 2017. http://bura.brunel.ac.uk/handle/2438/15823.

Full text

Abstract:

This thesis contributes to the literature in the finance and accounting field throughout its three empirical chapters. The first empirical chapter contributes to the literature on accounting conservatism in several ways; first, it investigates the accounting conservatism of US insurance companies using four measures, namely, non-operating accruals, skewness of earnings and cash flows, book to market ratio and asymmetric timeliness measures. Second, this paper compares these four measures in order to determine the association and differences between them. Finally, the level of accounting conservatism of the insurance companies is compared to that of a sample of commercial banks to check whether they have similar levels of accounting conservatism. The results of the first chapter suggest that the changes in accounting performance, as measured by return over assets, can be partly explained by accounting conservatism, since it is measured by the accumulation of non-operating accruals, skewness of operating cash flow and accruals, book to market ratio, adjusted book to market ratio and Basu's asymmetric measure. All of these four measures give robust evidence that insurance companies' accounts tended to be conservative for the whole sample period, and that the level of conservatism has risen over the years. More interestingly, a t test for the differences in means suggests that accruals conservatism show on average a higher level of accounting conservatism than book value conservatism does. Finally, our results, based on a constant sample consist of 92 banks and 46 insurance companies whose data are available for all the sample years; they suggest that both insurance companies and banks have similar levels of accounting conservatism due to their similar reporting characteristics. The second empirical chapter contributes to the existing literature on equity valuation in two ways. First, it confirms the importance of imposing linear information dynamics when predicting the equity values of insurance companies, because the restricted models result in fewer error metrics. Second, it highlights the role of the accruals components in the equity valuation of US insurance companies by demonstrating that the incorporation of accrual components in the residuals income valuation model suggested by Ohlson (1995) has smaller error metrics than those of aggregate net income. Our results are based on a sample of US insurance companies, which consists of 718 firm-year observations over the period from 2001 to 2012. For instance, our results suggest that total accruals, changes in insurance reserve, changes in account receivables, and deferred acquisition costs have an incremental ability to predict equity market value over abnormal earnings and book values. Furthermore, the predictive ability of changes in insurance reserves is higher than the predictive ability of changes in account receivables and the change in deferred acquisition costs without imposing the LIM structures. However, when the LIM structure is imposed the predictive ability of changes in deferred acquisition costs is higher than the predictive ability of both changes in accounts receivable and changes in insurance reserves. Our final empirical chapter contributes to the literature on accounting anomalies by investigating the value to price anomaly (V/P), where the fundamental value (V) is estimated using the residual income valuation model. Motivated by the findings of Hwang and Lee (2013), Fama and French (2015), and Fama and French (2016), Chapter Four asks whether V/P strategies reflect the risks factor or whether this is better explained by market inefficiency, and whether Fama and French's five-factor model can explain the excess return of V/P. To answer the previous questions we use data from the merger of COMPUSTAT, CRSP, I/B/E/S for all the non-financial firms listed in AMEX, NYSE, and NASDAQ during the period from 1987 to 2015. Our findings suggest that the V/P ratio is positively correlated to future stock returns after controlling for several firm characteristics, which are known to be proxies of common risks. Our results indicate that the omission of risk factors is not likely to be an explanation of the V/P effect. To answer the second question, we compare the performances of different asset pricing models by calculating the GRS F-statistics. Our findings clearly indicate that the five-factor model of Fama and French performs better than either the CAPM or the traditional Fama and French three factor model. These results confirm that the excess returns of V/P strategy vary due to the differences in size, the B/M ratio, operating profit and betas across quintile portfolios. However, these factors cannot explain all the variation in excess returns; moreover, the stocks in the high V/P may be riskier than the stocks in the low V/P portfolios in certain other dimensions.

APA, Harvard, Vancouver, ISO, and other styles

7

Santos, Renato de Miranda. "Modelo de avaliação pelos lucros residuais (residual income valuation RIV) : uma aplicação às empresas do setor de transportes terrestres do Brasil." reponame:Repositório Institucional da UnB, 2013. http://repositorio.unb.br/handle/10482/15043.

Full text

Abstract:

Dissertação (mestrado)— Universidade de Brasília, Departamento de Economia, Mestrado em Gestão Econômica de Negócios, 2013.
Submitted by Albânia Cézar de Melo (albania@bce.unb.br) on 2014-01-21T12:31:11Z No. of bitstreams: 1 2013_RenatoMirandaSantos.pdf: 627720 bytes, checksum: 12448711cdfbdb6373709a2b5e86d5c7 (MD5)
Approved for entry into archive by Patrícia Nunes da Silva(patricia@bce.unb.br) on 2014-01-28T14:02:21Z (GMT) No. of bitstreams: 1 2013_RenatoMirandaSantos.pdf: 627720 bytes, checksum: 12448711cdfbdb6373709a2b5e86d5c7 (MD5)
Made available in DSpace on 2014-01-28T14:02:21Z (GMT). No. of bitstreams: 1 2013_RenatoMirandaSantos.pdf: 627720 bytes, checksum: 12448711cdfbdb6373709a2b5e86d5c7 (MD5)
Esta dissertação visa aplicar o Modelo de Avaliação pelos Lucros Residuais (Residual Income Valuation RIV) às concessionárias de ferrovias e rodovias federais, reguladas pela Agência Nacional de Transportes Terrestres ANTT . A metodologia utilizada incluiu pesquisa exploratória, na medida em que é aplicado o modelo ao setor de transportes terrestre do Brasil e analisado sua dinâmica e seu valor, e pesquisa bibliográfica, quanto aos aspectos teóricos do modelo. A aplicação do RIV a estas empresas objetos da pesquisa visa sanar algumas lacunas de informações, em especial a mensuração da relevância que elas representam no mercado brasileiro, qual o valor que estas empresas possuem pelo fato de não ser conhecido seus valores de mercados, uma vez que suas ações não são negociadas na bolsa de valores. O modelo RIV define que o valor da empresa corresponde ao seu patrimônio líquido contábil mais a soma das expectativas dos lucros residuais (anormais) futuros trazidos a valor presente. Os resultados foram projetados com base em taxa de crescimento operacional, e a taxa de desconto teve como referência o Custo do Capital Próprio. Inicialmente o modelo RIV é validado, mediante aplicação em uma empresa negociada na Bolsa de Valores de Nova York, sendo verificado com certo grau de confiabilidade o seu poder preditivo. Após validação é replicado o modelo às empresas de transportes terrestres e é obtido o diagnóstico do setor, o qual pode ser utilizado tanto como subsídio para as decisões regulatórias da agência, como insumo para as discussões no meio acadêmico que tratam da importância das informações contábeis como proxy para avaliação de empresas. O trabalho conclui pela validação do modelo de avaliação Residual Income Valuation RIV , apresenta um diagnóstico da situação econômica e financeira de cada empresa objeto do trabalho e apresenta o valor agregado do setor. Por fim apresenta sugestões para realização de novos estudos que enriqueceriam a pesquisa acadêmica no Brasil. ______________________________________________________________________________ ABSTRACT
This thesis aims to apply the Evaluation Model for Residual Income - RIV to rail concessionaires and federal highways, regulated by the Agência Nacional de Transportes Terrestres ANTT . The methodology included exploratory research, to the extent that the model is applied to the land transport sector in Brazil and analyzed its dynamics and its value, and literature, as the theoretical model. The application of these companies RIV objects of research aims to address some gaps of information, in particular the measurement of relevance they represent in the Brazilian market, what value these companies because they have not known their market values since that their shares are not traded on the stock exchange. The RIV model defines the value of the company is to its net book value plus the sum of earnings expectations residual (abnormal) future present value. The results were projected based on growth rate of operating, and the discount rate had reference to the Cost of Equity. Initially the RIV model is validated by applying on a company traded on the Stock Exchange of New York, being seen with a degree of reliability to its predictive power. After validating the model is replicated to land transport companies, and is obtained the diagnosis of the sector, which can be used both as a basis for the decisions of the regulatory agency, as an input to the discussions in academia who discuss the importance of accounting information as proxy for business valuation. The paper concludes by validating the assessment model Residual Income Valuation RIV presents a diagnosis of the economic and financial situation of each companys work and has the added value of the sector. Finally presents suggestions for further studies that enrich the academic research in Brazil.

APA, Harvard, Vancouver, ISO, and other styles

8

Choi, Young-Soo. "The reliability and the applicability of the residual income-based valuation model : theoretical augmentation of the linear information dynamics model and its validity compared with Ohlson and Edwards-Bell-Ohlson approaches." Thesis, Lancaster University, 2002. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.403802.

Full text

APA, Harvard, Vancouver, ISO, and other styles

9

Hjelström, Tomas. "The closed-end investment company premium puzzle : model development and empirical tests on Swedish and British data." Doctoral thesis, Handelshögskolan i Stockholm, Redovisning och Finansiering (B), 2007. http://urn.kb.se/resolve?urn=urn:nbn:se:hhs:diva-480.

Full text

Abstract:

For decades, business press and researchers have observed and investigated the premiums/discounts on closed end investment companies. Proposed explanations for the phenomenon have been poor performance, high expenses (due to agency relationships), inefficient internal capital markets and excess volatility in the returns of the shares of the closed-end investment companies. Some, but not conclusive, empirical evidence support these theories. Most empirical evidence is based on American data. This study uses British and Swedish data on closed end investment companies. Some, but not conclusive, empirical evidence support these theories. Most empirical evidence is based on American data. This study uses British and Swedish data on closed end investment companies from 1972 – 2004 to investigate the premiums/discounts. Three areas of explanations are examined: performance, agency costs and diversification. In contrast to previous studies this study uses detailed data on quoted and unquoted securities respectively to investigate the relationship between performance and premiums/discounts. Evidence is found for a relationship between the performance on unquoted securities and premiums/discounts, but not for quoted securities. Indications that measurement biases in unquoted securities are properly priced are also found. The agency problem is analyzed in two ways, formal and controlling power, to investigate if actions taken by the company substantiating agency behavior have additional effects on prices. Such actions are measured as large investments in other portfolio companies (controlling power). The empirical evidence suggests that the existence of formal power creates additional discounts. The marginal effect on discounts is even deeper when proposed agency actions are identified. Diversification is argued to decrease the value of a portfolio of securities when heterogeneous beliefs are present. This study provides evidence that portfolio diversification deepens discounts.
Diss. Stockholm : Handelshögskolan, 2007

APA, Harvard, Vancouver, ISO, and other styles

10

Choong, Kwee Keong. "Residual income information dynamics and equity valuation : a study using UK data." Thesis, Imperial College London, 2003. http://hdl.handle.net/10044/1/8707.

Full text

APA, Harvard, Vancouver, ISO, and other styles

More sources

Books on the topic "Residual income valuation model"

1

Reichert, Jörg. Das Residual-income-Model: Eine kritische Analyse. Frankfurt am Main: Lang, 2007.

Find full text

APA, Harvard, Vancouver, ISO, and other styles

2

Walker, Martin. Towards an understanding of profitability analysis within the residual income valuation framework. London: Middlesex University Business School, 2002.

Find full text

APA, Harvard, Vancouver, ISO, and other styles

3

O'Brien, John. Bond valuationand Bond tutor. Cincinnati, Ohio: South-Western College Pub, 1996.

Find full text

APA, Harvard, Vancouver, ISO, and other styles

Book chapters on the topic "Residual income valuation model"

1

Zhang, Guochang. "Accounting Measures of Value Generation: The Residual Income Model." In Accounting Information and Equity Valuation, 1–17. New York, NY: Springer New York, 2013. http://dx.doi.org/10.1007/978-1-4614-8160-7_1.

Full text

APA, Harvard, Vancouver, ISO, and other styles

2

Zhang, Guochang. "Capital Following Profitability: Why the Residual Income Dynamic Is Nonlinear." In Accounting Information and Equity Valuation, 39–55. New York, NY: Springer New York, 2013. http://dx.doi.org/10.1007/978-1-4614-8160-7_3.

Full text

APA, Harvard, Vancouver, ISO, and other styles

3

Taylor, Gary K. "Residual Income and Stock Valuation Techniques: Does It Matter Which One You Use?" In The Valuation Handbook, 172–81. Hoboken, NJ, USA: John Wiley & Sons, Inc., 2011. http://dx.doi.org/10.1002/9781118268179.ch7.

Full text

APA, Harvard, Vancouver, ISO, and other styles

4

Söderberg, Bo. "A Note on the Hedonic Model Specification for Income Properties." In Real Estate Valuation Theory, 157–80. Boston, MA: Springer US, 2002. http://dx.doi.org/10.1007/978-1-4615-0909-7_8.

Full text

APA, Harvard, Vancouver, ISO, and other styles

5

Brigo, Damiano, Qing Liu, Andrea Pallavicini, and David Sloth. "Nonlinear Valuation under Margining and Funding Costs with Residual Credit Risk: A Unified Approach." In Handbook of Fixed-Income Securities, 514–38. Hoboken, NJ, USA: John Wiley & Sons, Inc, 2016. http://dx.doi.org/10.1002/9781118709207.ch21.

Full text

APA, Harvard, Vancouver, ISO, and other styles

6

Pimentel, Liliana Marques, and Susana Margarida Faustino Jorge. "Earnings Quality and Firm Valuation." In International Financial Reporting Standards and New Directions in Earnings Management, 1–31. IGI Global, 2019. http://dx.doi.org/10.4018/978-1-5225-7817-8.ch001.

Full text

Abstract:

The quality of earnings is a summary metric in firm performance evaluation and a focal question to assess the quality of accounting information. A high-quality earnings figure will reflect a firm's current operating performance, being a good indicator of future operating performance; it also accurately annuitizes the intrinsic value of the firm. The multidimensional nature of the earnings quality (EQ) concept has given form to a multiplicity of constructs and measures. This chapter offers a systematic literature review on EQ and its implication on firm value. On the one hand, it discusses the different existent definitions of EQ and the multidimensional nature of the concept; on the other hand, it highlights a “new” EQ perspective taking into account the virtuosities of the residual income model. An empirical model is proposed that reinterprets rebuilding the linear information dynamics in relation to market value added and captures, in a composite measure, the three-dimensional facet of the EQ concept: persistence, predictability, and informativeness of earnings.

APA, Harvard, Vancouver, ISO, and other styles

7

"12. Residual Income Valuation." In Valuation, 239–52. Oldenbourg Wissenschaftsverlag, 2004. http://dx.doi.org/10.1515/9783486816143-012.

Full text

APA, Harvard, Vancouver, ISO, and other styles

8

Simsek, Koray D., and Halil Kiymaz. "Valuing and Analyzing Fixed Income Derivatives." In Debt Markets and Investments, 501–20. Oxford University Press, 2019. http://dx.doi.org/10.1093/oso/9780190877439.003.0027.

Full text

Abstract:

Derivatives valuation is based on the key principle of no-arbitrage pricing. This chapter presents valuation models for various types of fixed income derivatives, including forward rate agreements (FRAs), interest rate swaps, Eurodollar and Treasury bond futures, bond options, caps and floors, swaptions, and options on interest rate futures. Following the financial crisis that began in the summer of 2007, major changes occurred in the practice of fixed income derivatives valuation, particularly regarding the adoption of overnight indexed swaps (OIS) as a source of the risk-free rate. This chapter shows how OIS discounting is implemented in FRA pricing and swap valuation. Traditional approaches such as cost of carry valuation in futures pricing are illustrated. With respect to option valuation, this chapter explains the risk-neutral pricing approach as well as closed-form solutions such as the Black model. The chapter also provides numeric examples to illustrate the practical use of the presented models and formulas.

APA, Harvard, Vancouver, ISO, and other styles

Conference papers on the topic "Residual income valuation model"

1

Liu, Yanping, and Sha Liu. "The Pricing Model in the Foreign Mergers and Acquisitions of State-Owned Shares Based on Residual Income Valuation Model and Real Option Pricing Method." In 2010 International Conference on Management and Service Science (MASS 2010). IEEE, 2010. http://dx.doi.org/10.1109/icmss.2010.5576473.

Full text

APA, Harvard, Vancouver, ISO, and other styles

2

Lan, Yingjun. "Evaluating the Efficiency Between Discounted Cashflow Valuation and Residual Income Valuation." In 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021). Paris, France: Atlantis Press, 2021. http://dx.doi.org/10.2991/assehr.k.211209.001.

Full text

APA, Harvard, Vancouver, ISO, and other styles

3

Won-Joon Jang and Jin-Young Ryu. "Technology valuation model in defense offset trade: Income approach." In Technology. IEEE, 2008. http://dx.doi.org/10.1109/picmet.2008.4599879.

Full text

APA, Harvard, Vancouver, ISO, and other styles

4

Hui, Qian, and Changxin Xu. "The Study on a Valuation Model of Port Coastline Resources Based on Income Reduction Method." In International Conference On Civil Engineering And Urban Planning 2012. Reston, VA: American Society of Civil Engineers, 2012. http://dx.doi.org/10.1061/9780784412435.138.

Full text

APA, Harvard, Vancouver, ISO, and other styles

5

Zaiqiang Huo. "Data mining: The investment value analysis on China's bank stocks based on residual income model." In 2014 IEEE Workshop on Electronics, Computer and Applications (IWECA). IEEE, 2014. http://dx.doi.org/10.1109/iweca.2014.6845622.

Full text

APA, Harvard, Vancouver, ISO, and other styles

Reports on the topic "Residual income valuation model"

1

VanderGheynst, Jean, Michael Raviv, Jim Stapleton, and Dror Minz. Effect of Combined Solarization and in Solum Compost Decomposition on Soil Health. United States Department of Agriculture, October 2013. http://dx.doi.org/10.32747/2013.7594388.bard.

Full text

Abstract:

In soil solarization, moist soil is covered with a transparent plastic film, resulting in passive solar heating which inactivates soil-borne pathogen/weed propagules. Although solarization is an effective alternative to soil fumigation and chemical pesticide application, it is not widely used due to its long duration, which coincides with the growing season of some crops, thereby causing a loss of income. The basis of this project was that solarization of amended soil would be utilized more widely if growers could adopt the practice without losing production. In this research we examined three factors expected to contribute to greater utilization of solarization: 1) investigation of techniques that increase soil temperature, thereby reducing the time required for solarization; 2) development and validation of predictive soil heating models to enable informed decisions regarding soil and solarization management that accommodate the crop production cycle, and 3) elucidation of the contributions of microbial activity and microbial community structure to soil heating during solarization. Laboratory studies and a field trial were performed to determine heat generation in soil amended with compost during solarization. Respiration was measured in amended soil samples prior to and following solarization as a function of soil depth. Additionally, phytotoxicity was estimated through measurement of germination and early growth of lettuce seedlings in greenhouse assays, and samples were subjected to 16S ribosomal RNA gene sequencing to characterize microbial communities. Amendment of soil with 10% (g/g) compost containing 16.9 mg CO2/g dry weight organic carbon resulted in soil temperatures that were 2oC to 4oC higher than soil alone. Approximately 85% of total organic carbon within the amended soil was exhausted during 22 days of solarization. There was no significant difference in residual respiration with soil depth down to 17.4 cm. Although freshly amended soil proved highly inhibitory to lettuce seed germination and seedling growth, phytotoxicity was not detected in solarized amended soil after 22 days of field solarization. The sequencing data obtained from field samples revealed similar microbial species richness and evenness in both solarized amended and non-amended soil. However, amendment led to enrichment of a community different from that of non-amended soil after solarization. Moreover, community structure varied by soil depth in solarized soil. Coupled with temperature data from soil during solarization, community data highlighted how thermal gradients in soil influence community structure and indicated microorganisms that may contribute to increased soil heating during solarization. Reliable predictive tools are necessary to characterize the solarization process and to minimize the opportunity cost incurred by farmers due to growing season abbreviation, however, current models do not accurately predict temperatures for soils with internal heat generation associated with the microbial breakdown of the soil amendment. To address the need for a more robust model, a first-order source term was developed to model the internal heat source during amended soil solarization. This source term was then incorporated into an existing “soil only” model and validated against data collected from amended soil field trials. The expanded model outperformed both the existing stable-soil model and a constant source term model, predicting daily peak temperatures to within 0.1°C during the critical first week of solarization. Overall the results suggest that amendment of soil with compost prior to solarization may be of value in agricultural soil disinfestations operations, however additional work is needed to determine the effects of soil type and organic matter source on efficacy. Furthermore, models can be developed to predict soil temperature during solarization, however, additional work is needed to couple heat transfer models with pathogen and weed inactivation models to better estimate solarization duration necessary for disinfestation.

APA, Harvard, Vancouver, ISO, and other styles

We offer discounts on all premium plans for authors whose works are included in thematic literature selections. Contact us to get a unique promo code!