Ratio Analysis and Equity Valuation: From Research to Practice

By Doron Nissim, Stephen H. Penman. 2001

715 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/5da3a2c1474de8d11401ad8329372462add2de8a

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Citations in the corpus

A Measure of Competition Based on 10-K Filings (2012, neutral): “Porter (1979) famously identifies five sources of competitive intensity in an industry that determine a firm’s performance (barriers to entry, threat of substitutes, competitive rivalry, bargaining power of customers, and bargaining power of suppliers).”
Value investing in credit markets (2012, neutral): “ROAi,t is return on assets defined as the ratio of trailing 12 months earnings before interest (computed as ‘NIQ’ ? ‘XINTQ’ * (1 - tax_rate, using Compustat mnemonics), where tax_rate is from Nissim and Penman (2001), to average total assets over the corresponding 12 months period.”
Implied Equity Duration: A New Measure of Equity Risk (2004, methodology): “Moreover, both economic intuition and empirical evidence suggest that the mean to which ROE reverts approximates the cost of equity [Nissim and Penman 2001].”
Signaling through corporate accountability reporting (2015, neutral): “…the fit of our model, but it also allows us to investigate what portion of firm performance is associated with higher levels of CSR expenditures, as profit margin and asset turnover measure different aspects of profitability and have different levels of persistence (Nissim and Penman, 2001).”
Determinants of profitability in European manufacturing and services: evidence from a dynamic panel model (2005, background): “The present results are also broadly consistent with those of several recent US accounting and finance and strategic management studies based on data sets of various cross-sectional and time-series dimensions (Penman, 1991; McGahan and Porter, 1999; Nissim and Penman, 2001; Fama and French, 2000).”
Earnings Management Using Classification Shifting: an Examination of Core Earnings and Special Items (2006, neutral): “Next, I include the asset turnover ratio (ATOt), as it has been shown to be inversely related to profit margin (e.g., Nissim and Penman 2001), and my definition of core earnings closely parallels profit margin.”
The Impact of Earnings on the Pricing of Credit Default Swaps (2007, background): “Thus, the table coefficients for the columns headed CDS_5 and CDS_10 measure the incremental association of the variable with CDS premia beyond that of the one-year maturity.”
CIO Reporting Structure, Strategic Positioning, and Firm Performance (2011, methodology): “While both ratios predict performance, there may be a negative link between OPIS and sales/assets (Nissim and Penman 2001).”
An evaluation of SFAS No. 130 comprehensive income disclosures (2007, positive): “Since firms are not required to separately disclose available-for-sale debt securities that would allow the calculation of their net debt position, we instead calculate net financial obligations as the difference between financial assets and financial liabilities following Nissim and Penman (2001). ”
Going digital: implications for firm value and performance (2019, neutral): “Next we first examine the return on net operating assets and net operating asset turnover (Soliman 2008; Nissim and Penman 2001) in Panels C and D.”