Measuring Value Relevance in a (Possibly) Inefficient Market

By David Aboody, John S. Hughes, Jing Liu. 2002

184 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/7a66d2b5e01a96fc22d8ea1c52b48d9cc0bc013c

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Citations in the corpus

Financial statement effects of adopting international accounting standards: the case of Germany (2007, methodology): “To ensure that our inferences are not affected by this problem, we conduct sensitivity tests along the lines proposed by Aboody et al. (2002) .”
Earnings, Cash Flows, and Ex Post Intrinsic Value of Equity (2007, methodology): “Since the anomalous pricing of the accrual and cash flow components of earnings does not persist beyond two years (Sloan 1996; Xie 2001), the intrinsic value measure—unlike current returns or stock price—are unlikely to be biased by market mispricing (see Aboody et al. 2002).”
A Review of the Value Relevance Literature (2009, methodology): “Aboody, Hughes and Liu [39] evaluate how market inefficiency effects cause biases in inferences drawn from traditional value relevance studies.”
Is Cash Flow King in Valuations? (2007, background): “…inefficiencies may induce substantial bias in stock return tests, the magnitude of the bias in price-level analyses is likely to be negligible because cross-sectional variation in mispricing is likely to be smaller than cross-sectional variation in intrinsic values (Aboody, Hughes, and Liu 2002).”
The Value Relevance of Financial Accounting Information in a Transition Economy: The Case of the Czech Republic (2005, methodology): “Aboody et al. (2002) show that the market efficiency limitations may be overcome by including future price changes into the research design which adjusts for delayed market reactions.”
The Impact of IFRS Adoption on the Value Relevance of Book Value and Earnings (2011, unknown): “These are in the spirit of future price-based tests as advocated by Aboody et al. (2002). The advantage of this approach is that we can be sure investors have access to the IFRS numbers from the following year’s financial statements.”
Fair-Value Pension Accounting (2007, background): “As in Aboody et al. (2002) and Subramanyam and Venkatachalam (2007), we estimate intrinsic value by discounting future dividends per share and end-of-period stock prices.”