Effect of fair value accounting on the company's reputation

Abstract

The purpose of this paper is to study in the French context the impact of the application of fair value on the shareholder value creation by comparing the information's relevance of accounting indicators of French corporate groups in the industrial sector included in the CAC All-Tradable between pre-fair value period (2001)(2002)(2003) and the post-fair value (2005)(2006)(2007). Using the method of logistic regression permits us to demonstrate, firstly, that the variables of traditional character still retain their rank as key indicators determining stock return whatever the accounting principle relating thereto, and we noticed, on the other hand, that there is a marked improvement in information content of variables if and only they were submitted as understandable and uncomplicated under the model of fair value.

Efficiency in Operations of Nasdaq Listed Technology Companies for 2011–23

“…It's noteworthy that higher selling, general, and administrative (SGA) expenses can, at times, be a strategic investment rather than a mere financial burden for technology companies. This is particularly true when these expenses are directed towards acquiring intangible assets or initiatives that contribute to future operational efficiency and profitability (Riahi and Khoufi, 2016). For instance, investments in research and development (R&D), employee training, or cutting-edge technology infrastructure may fall under SGA expenditures but can yield significant long-term benefits.…”