Conservative Accounting and Equity Valuation

By Xiao-Jun Zhang. 2000

253 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/503733ecf5ac57cc4b7c99063db7bf21f6ecda03

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Strategy and Management

Citations in the corpus

Conditional and Unconditional Conservatism:Concepts and Modeling (2005, unknown): “See Greenball (1969), Beaver and Dukes (1973, 1974), Feltham and Ohlson (1995, 1996), Myers (1999), Pope and Walker (1999), Givoly and Hayn (2000), Ahmed et al. (2000), Beaver and Ryan (2000), Zhang (2000), Penman and Zhang (2002), Watts (2003b), and Monahan (2004).”
The Quality of Financial Statements: Perspectives from the Recent Stock Market Bubble (2002, unknown): “15 Zhang (2000, 2001) models the effect.”
Balance sheet versus earnings conservatism in Europe (2004, background): “If balance sheet conservatism exists, and as Feltham and Ohlson (1995), Beaver and Ryan (2000) and Zhang (2000) point out, this would be reflected in the understatement of book value of equity.”
The Decision Usefulness of Fair Value Accounting – A Theoretical Perspective (2007, background): “This is especially relevant outside of the steady state, that is, for firms with increasing or declining net assets (Zhang, 2000, p. 132).”
What Determines Residual Income (2001, background): “Similarly, Zhang (2000) models the impact of conservative accounting on earnings in a steady state and shows that the impact could be nonzero and varies with industry and firm characteristics as well.”
Financial Statement Analysis of Leverage and How It Informs About Profitability and Price-to-Book Ratios (2001, background): “…-0.213 -0.102 -0.007 25% 0.062 0.060 -0.020 0.061 -0.006 0.033 50% 0.122 0.100 0.006 0.423 0.038 0.053 75% 0.175 0.155 0.034 0.964 0.100 0.074 90% 0.244 0.239 0.067 1.775 0.250 0.118 95% 0.306 0.327 0.101 2.391 0.405 0.182 Panel B: Operating liability leverage and profitability measures RNOA ROOA”
Accounting Conservatism, the Quality of Earnings, and Stock Returns (2002, background): “Beaver and Ryan (2000) and Zhang (2001) model the interaction of conservatism and growth in a valuation context.”
Perspectives on Recent Capital Market Research (2002, methodology): “Early modeling assumed unbiased accounting and the clean surplus relation, while later extensions incorporated conservative accounting (Feltham and Ohison 1995; Zhang 2000).”