Beyond accounting and back: An empirical examination of the relative relevance of earnings and “other” information

Schaberl, Philipp D.

doi:10.1016/j.adiac.2016.08.004

Cited by 8 publications

(22 citation statements)

References 58 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Ohlson (1995, 2001) proposes that firm value is a function of earnings, book values, and other information about future abnormal earnings. One stream of research investigates the intrinsic value of other information used in investment decisions, specifically, the information captured in consensus analyst forecasts (Bryan & Tiras, 2007; Cheng, 2005; Dechow et al, 1999; Dontoh et al, 2004; Easterday et al, 2011; Schaberl, 2016). Dechow et al (1999) show that analysts' forecasts have significant explanatory power above earnings and book value information.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…While the trend regarding the value relevance of accounting information is well established, the focus on temporal changes in other information captured in analysts' forecasts has received less attention (Hand, 2001; Schaberl, 2016). Schaberl (2016) investigates the temporal changes in value relevance of accounting and other information and finds that the relative value relevance of earnings has remained consistent over time, while the relative value relevance of analysts' forecasts has increased over time. Our work is different from that of Schaberl in a few ways.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…The authors postulate that non‐information‐based trading creates noise in stock prices, which moves prices away from fundamental values (Dontoh et al, 2004; Fung et al, 2010). Non‐information‐based trading can also contribute to an increase in firm‐specific stock price volatility (Fung et al, 2010), which has been associated with the decline in value relevance of accounting information (Core et al, 2003; Schaberl, 2016).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

“…Conversely, other information, which historically has been assumed to be captured in consensus analyst forecasts, has been shown to be increasingly valuable to investors. (Bryan & Tiras, 2007; Cheng, 2005; Dechow, Hutton, & Sloan, 1999; Dontoh et al, 2004; Easterday, Sen, & Stephan, 2011; Schaberl, 2016). The underlying assumption is that as accounting numbers become less relevant, investors turn to alternative sources of information to price stocks.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Temporal changes in the value relevance of analysts' forecasts

Johnston

Guidry

Trimble

2021

J Corp Accounting Finance

View full text Add to dashboard Cite

We examine the temporal change in the value relevance of analysts' forecasts relative to accounting information over a 42‐year period. The temporal change in value relevance is measured using the explained variation (R2) from the cross‐sectional regressions of security prices and returns on accounting metrics, specifically earnings and book value, alone and jointly with other information proxied by analysts' forecasts using a sample of 102,875 U.S. firm‐year observations. Prior research suggests that the value relevance of accounting information has declined over time. If investors are relying on metrics other than financial metrics, we would expect the reliance on analysts' forecasts to increase. Interestingly, the joint relevance of accounting and analysts' forecasts also declines over our sample period and the incremental relevance of analysts' forecasts remains constant over our sample period, suggesting that investors are not substituting analysts' forecasts for accounting information.

show abstract

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Temporal changes in the value relevance of analysts' forecasts

Johnston

Guidry

Trimble

2021

J Corp Accounting Finance

View full text Add to dashboard Cite

show abstract

“…Contudo, a direção da relação ora examinada é imprecisa, porque a literatura sugere (Clarkson et al, 2004;Hassel et al, 2005;Iatridis, 2013;Middleton, 2015) -sendo essa informação relevante para a precificação dos títulos acionários -que o mercado pode refleti-la positiva ou negativamente no preço. Ressalta-se que a relevância atribuída pelo investidor é função de condições agregadas do mercado (Schaberl, 2016), como a concentração acionária e a baixa proteção legal no Brasil (Terra & Lima, 2006).…”

Section: Fundamentação Do Problema E Desenvolvimento Das Hipótesesunclassified

Relevância Informacional Atribuída ao Disclosure de Gastos Ambientais

Santos

2018

RCC, Rev. Contab. Control.

View full text Add to dashboard Cite

Buscou-se neste estudo examinar a relevância informacional atribuída à divulgação de dispêndios ambientais em firmas consideradas sustentáveis no mercado brasileiro. O modelo teórico-empírico proposto por Ohlson (1995) foi aplicado aos dados de 44 firmas no período 2011-2015, totalizando 220 observações. O modelo Residual Income Valuation (RIV) (OHLSON, 1995) permite avaliar quantitativamente como o disclosure complementar impacta as expectativas dos investidores e reflete no valor das firmas. As estimações econométricas foram realizadas com dados em painel com efeitos fixos. Os resultados da análise mostram que o disclosure de gastos ambientais não é fator distintivo na precificação; porém, os dispêndios ambientais refletem menores preços da firma. As inferências podem corroborar o campo de estudo que questiona sobre a real competência dos proprietários das firmas em relação ao objeto social da empresa, além de alçar discussões sobre o monitoramento de gastos ambientais discricionários em firmas de capital aberto no Brasil. Os resultados apresentados alimentam discussões sobre a demanda da apresentação do resultado ambiental nas demonstrações financeiras tradicionais, uma vez que essa informação apresenta relevância informacional.

show abstract