Who Is My Peer? A Valuation-Based Approach to the Selection of Comparable Firms

By Sanjeev Bhojraj, Charles M. C. Lee. 2002

377 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/e48cbeacf33bc8284c75023ed37c76eac8250889

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. Qiang Cheng
2. W. Johnson
3. William C. Schwartz Jr.
4. C. M. Lee
5. Pepa Kraft
6. Stephen G. Ryan
7. C. Wang
8. Seil Kim

In Finance

1. C. Wang
2. C. M. Lee
3. Paul Ma
4. W. Johnson
5. William C. Schwartz Jr.
6. Qiang Cheng
7. A. Damodaran
8. Pepa Kraft

In Strategy and Management

1. W. Johnson
2. William C. Schwartz Jr.
3. Pepa Kraft
4. Stephen G. Ryan
5. Seil Kim
6. C. Wang
7. C. M. Lee
8. Paul Ma

Citations in the corpus

• Valuation Approaches and Metrics: A Survey of the Theory and Evidence (2007, background): “In contrast, Cheng and McNamara (2000), Bhojraj and Lee (2002) and Bhojraj et al. (2003) argue that picking comparables using a combination of industry categorization and fundamentals such as total assets yields more precise valuations than using just the industry classification.”
• The Valuation of Biotech IPOs (2005, background): “According to Bhojraj and Lee (2002), the first is a direct valuation approach, in which firm value is estimated directly from its fundamentals without considering the current price of other firms.”
• Search Based Peer Firms: Aggregating Investor Perceptions through Internet Co-Searches (2015, methodology): “5 (2)See Bhojraj and Lee (2002); Bhojraj et al. (2003); Chan et al. (2007); Lewellen and Metrick (2010). (3)A recent study by Drake et al.”
• The Use of Valuation Models by UK Investment Analysts (2008, background): “, 2000; Courteau et al., 2001). Using either financial analysts’ forecasts or ex post earnings and cash flow realisations, these studies analyse the statistical association between equity valuations based on DCF or residual income valuation models and share prices for large samples of US firms and g”
• What's My Line? A Comparison of Industry Classification Schemes for Capital Market Research (2003, background): “Industry membership is crucial in determining a firm’s cost of capital (e.g., Fama and French (1997); Gebhardt, Lee, and Swaminathan (2001)), estimating valuation multiples (Alford (1992); Liu, Nissim, and Thomas (2002)), and identifying better comparable firms (Bhojraj and Lee (2002)).”
• Financial statement comparability and credit risk (2013, positive): “For example, Bhojraj and Lee (2002) find that analysts’ valuations are more accurate when financial statement data for comparable peer firms is available.”
• What Determines Residual Income (2001, background): “(1996) in predicting future ROE and Bhojraj and Lee (2002) in explaining the firm market-to-book ratio.”
• Are Investors Misled by 'Pro Forma' Earnings? (2002, positive): “We use a market multiples approach (Liu, Nissim and Thomas 2000; Bhojraj and Lee 2002) to determine if investors assign a higher (or lower) share price to pro forma firms than they do to firms that do not use this disclosure strategy.”