Should Analysts Go by the Book? Valuation Models and Target Price Accuracy in an Emerging Market

Sayed, Samie Ahmed

doi:10.1177/0972150915591626

Cited by 3 publications

(3 citation statements)

References 26 publications

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“…1). Sayed (2015) states that market analyst prefers to use heuristics-driven earnings before interest, taxes, depreciation and amortization (EBITDA).…”

Section: Introductionmentioning

confidence: 99%

“…In addition to Rappaport's shareholder value approach, the economic value-added concept (EVA), the discounted cash flow method (DCF) and the cash flow added (CVA) and so on have been used since the 1990s (Ebeling, 2007, p. 1). Sayed (2015) stated that market analyst prefers to use heuristics-driven earnings before interest, taxes, depreciation and amortization (EBITDA). Due to the neglect of other stakeholders, the exclusive orientation towards the owners' interests, as outlined earlier, has partly been subject to critical assessment (Skrzipek, 2005, p. 124).…”

Section: Introductionmentioning

confidence: 99%

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Utilization of Value-based Management in the Strategic Management of German Automotive Industry

Raj

Beck

Soliman

2019

Global Business Review

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The purpose of this research article is to analyse the value-based management commitment of automotive enterprises and to examine the factors that explain the control parameters in automotive industry. There have been a few empirical studies published in the German’s automotive sector, but most of the existing studies failed to provide evidence of utilization of value-based management in the strategic management in the automotive sector. The German automotive industry’s development is closely related to global economic developments. Previous research work has considered control parameters of enterprises, but there is little evidence on the factors that explain which control parameters are used in automotive industry. A survey based on annual reports from 2008 to 2011 is used. In total, 20 annual reports of automotive companies were analysed. The results show that automotive companies, especially original equipment manufacturers and listed suppliers, have committed to value-oriented management and have implemented value-oriented approaches. However, not all of the suppliers are communicating this in their reports. The results also show that economic value added is the leading key indicator in the automotive industry.

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“…1). Sayed (2015) states that market analyst prefers to use heuristics-driven earnings before interest, taxes, depreciation and amortization (EBITDA).…”

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Utilization of Value-based Management in the Strategic Management of German Automotive Industry

Raj

Beck

Soliman

2019

Global Business Review

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show abstract

“…According to Chalmers Navissi, and Qu (2010), improvement to accounting standards is regarded as an important pillar of any economic reforms that aim at more efficient functioning of capital markets. Studies analysing managerial discretion in different accounting regimes claim that degree of freedom permitted in accounting standards determines the quality of financial reports (e.g., Dye & Sunder, 2001; Goncharov & Zimmermann, 2006; Sayed, 2015). According to Goncharov and Zimmermann (2006), different accounting standards provide different accounting choices, applications of which, therefore, results in different financial reporting quality.…”

Section: Introductionmentioning

confidence: 99%

IFRS Adoption and Value Relevance of Accounting Information: Evidence from a Developing Country

Nijam

Jahfer

2018

Global Business Review

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The purpose of this study is to investigate the impact of International Financial Reporting Standard (IFRS) adoption on value relevance of accounting information in Sri Lanka by comparing value relevance of accounting information in pre- and post-IFRS adoption periods. This study employs Ohlson (1995, Contemporary Accounting Research, 11(2), 661–687) price regression model to explain value relevance of accounting information. It explains market value per share (MVPS) using earning per share (EPS) and book value of equity per share (BVEPS). The pre-IFRS period is designated as 2010 through to 2011, and the post-IFRS period is designated as 2012 through to 2014. The sample comprises 188 firms and 935 firm-year observations which nearly constitute to all firms listed in Colombo Stock Exchange except those not having at least two annual reports before and after the year 2012 and those having extreme and incomplete data. It is found that both BVEPS and EPS significantly and positively explain MVPS during the periods followed by IFRS adoption although EPS was not a significant predictor of MVPS prior to IFRS adoption. Pooled regression with data of both regimes, however, maintains that BVEPS and EPS significantly and positively explain MVPS. Although the overall predictive power of value relevance model improved in the years that followed IFRS adoption, value relevance of BVEPS has declined in post-IFRS implementation. However, the decline in value relevance of BVEPS perhaps has been compensated by improved quality of earning thereby making EPS as a significant predictor of market value of equity in the post-IFRS periods. These findings were not rebutted or changed even at the exclusion of the transitional year of 2012 from the sample. This study contributes to the extant value relevance literature and IFRS studies by investigating the impact of IFRS adoption in a developing economy and for the first time in Sri Lanka.

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Target price accuracy of sell-side analysts: evidence from India

Kadam,

Sethi

2024

Cogent Economics & Finance

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Should Analysts Go by the Book? Valuation Models and Target Price Accuracy in an Emerging Market

Cited by 3 publications

References 26 publications

Utilization of Value-based Management in the Strategic Management of German Automotive Industry

Utilization of Value-based Management in the Strategic Management of German Automotive Industry

IFRS Adoption and Value Relevance of Accounting Information: Evidence from a Developing Country

Target price accuracy of sell-side analysts: evidence from India

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