Financial Statement Analysis of Leverage and How It Informs About Profitability and Price-to-Book Ratios

By Doron Nissim, Stephen H. Penman. 2001

160 citations recorded by the source corpus.

Subfields: Accounting, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/a49a25d4145f461dfe07aae0caa46729fb1cf661

How researchers see this paper

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

In Accounting

1. Per Olsson
2. M. Gosman
3. Trish Kelly
4. Terry D. Warfield
5. W. Guay
6. Daniel A. Cohen
7. Shivaram Rajgopal
8. Rodrigo S. Verdi

In Strategy and Management

1. Per Olsson
2. M. Gosman
3. Trish Kelly
4. Terry D. Warfield
5. Rodrigo S. Verdi
6. Jeffrey Ng
7. K. Subramanyam
8. Daniel A. Cohen

Citations in the corpus

• The Profitability and Pricing of Major Customers (2004, background): “4. Nissim and Penman (2002) employ a similar approach to investigate operating leverage effects, and also interpret the coefficient as a proxy for the market’s expectation of future profitability.”
• Accrual Reliability, Earnings Persistence and Stock Prices (2005, unknown): “Nissim and Penman (2003) provide related evidence.”
• The Book-to-Price Effect in Stock Returns: Accounting for Leverage (2007, unknown): “We repeated the analysis using Ohlson O-scores, but results varied with the coefficient estimates we used. Results were similar to those here using the updated Ohlson model coefficients in Begley, Ming and Watts (1996). However, there was little association with returns when we used the Ohlson model”
• Does Public Ownership of Equity Improve Earnings Quality (2010, unknown): “8 Net operating assets equal the book value of common and preferred equity, plus total debt, minus the sum of cash, short-term investments and investment and advances, plus minority interest (see Nissim and Penman (2003)).”