登入選單

返回Google圖書搜尋

Accounting Rules, Equity Valuation, and Growth Options

Dmitry Livdan

出版	SSRN, 2015
URL	http://books.google.com.hk/books?id=NDQBzwEACAAJ&hl=&source=gbs_api

註釋

In a model with irreversible capacity investments, we show that financial statements prepared under replacement cost accounting provide investors with sufficient information for equity valuation purposes. Under alternative accounting rules, including historical cost and value in use accounting, investors will generally not be able to value precisely a firm's growth options and, therefore, its equity. For these accounting rules, we describe the range of valuations that is consistent with the firm's financial statements. We further show that replacement cost accounting preserves all value-relevant information if the firm's investments are reversible. However, the directional relation between the value of the firm's equity and the replacement cost of its assets is different from that in the setting with irreversible investments.