Scale and the Scale Effect in Market‐based Accounting Research

By Peter D. Easton, G. A. Sommers. 2003

260 citations recorded by the source corpus.

Subfields: Accounting, Management Science and Operations Research, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/a232f10fbb1dcdeab5f8a9a07c77f16eb33f789f

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Citations in the corpus

Are Asset Securitizations Sales or Loans (2008, unknown): “A common concern with cross-sectional valuation models stated in levels is correlated omitted variable bias, in particular scale bias (Barth and Kallapur, 1996; Easton and Sommers, 2003).”
Earnings, Cash Flows, and Ex Post Intrinsic Value of Equity (2007, methodology): “To be comparable, we convert 14 Regressions using undeflated variables are well known to cause scale and heteroscedasticity problems (Easton and Sommers 2003).”
Corporate social responsibility disclosure and market valuation: evidence from Spanish listed firms (2014, methodology): “In this study, a share price specification of the above model is used in order to mitigate the potential of incorrect inferences based on size differences (the so called ‘scale effect’, Easton and Sommers 2003; Barth and Clinch 2009).”
Assessing the Value Relevance of Accounting Data After the Introduction of IFRS in Europe: The Value Relevance of Accounting Data under IFRS (2010, unknown): “Scale effects refer to the influence of size on both accounting measures and share price: companies with higher (lower) share price are likely to have larger (smaller) book value of equity and larger (smaller) earnings per share (Easton and Sommers, 2003).”
Balance sheet versus earnings conservatism in Europe (2004, methodology): “If we interpret, as Lo and Lys (2000) or Easton and Sommers (2003), that scale is the independent variable of the model, then the proposed solution to remove scale problems is deflating the model by share price at the beginning of the period. Lo and Lys (2000) deflate all variables, but not the inte”
The Value-relevance of Earnings and Book Value, Ownership Structure, and Business Group Affiliation: Evidence From Korean Business Groups (2007, unknown): “Easton and Sommers (2003) show that large firms overwhelmingly influence the coefficients of independent variables in the regressions of market capitalization on various balance sheet and income statement data.”