Dividends, research and development expenditures, and the value relevance of book value for UK loss-making firms
سه شنبه , 26 شهریور 1392 ساعت 11:39 دسته بندی :دانلود مقاله :
Dividends, research and development expenditures, and the value relevance of book value for UK loss-making firms 2013
نویسندگان :
Wei Jiang , Andrew W. Stark
چکیده :
We extend prior research on the value relevance of accounting information for lossmaking
firms by allowing the coefficient of book value to vary across three distinct set
of loss-making firm observations in our valuation model. Our key findings are, first, that
book value is a less important determinant of equity value for either high R&D-intensive
firms or dividend-paying firms, relative to firms with low R&D-intensity and zero dividends.
Prior literature suggests that book value is a strong indicator of firm value for lossmaking
firms. This reasoning stems from book value’s role as: (i) a proxy for the value of
the possibility of abandoning or adapting the firms’ net assets; and/or (ii) a proxy for
expected future normal earnings. Our work suggests that this prior literature does not fully
capture the valuation role of book value for loss-making firms. Second, we also find that
dividends are value relevant, but generally only when the valuation role of book value is
contextualised by allowing its coefficient to vary across high R&D-intensive firms, and
dividend-paying, loss-making firms
?> Book value of equity Dividends Loss making firms Research and development R D expenditures Value relevanceمطالب مرتبط :
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