Aggregation, dividend irrelevancy, and earnings-value relations

Contemporary Accounting Research

Volumn 22, Issue 2, 2005, Pages 453-480

  Yee, Kenton K ^a  

^a Howard Hughes Medical Institute   (United States)

Author keywords

Dividend irrelevancy; Residual income valuation; Valuation

Indexed keywords

EID: 21144446459     PISSN: 08239150     EISSN: None     Source Type: Journal    
DOI: 10.1506/GEH4-WNJR-G58F-UM0U     Document Type: Article

References (32)

1. Ashton, D., T. Cooke, and M. Tippett. 2003. An aggregation theorem for the valuation of equity under linear information dynamics. Journal of Business, Finance, and Accounting 30 (3-4): 413-40.
2. Barth, M., W. Beaver, and W. Landsman. 1998. Relative valuation roles of equity book value and net income as a function of financial health. Journal of Accounting and Economics 25 (1): 1-34.
3. Beaver, W. 2002. Perspectives on recent capital market research. Accounting Review 77 (2): 453-74.
4. Begley, J., and G. Feltham. 2002. The relation between market values, earnings forecasts, and reported earnings. Contemporary Accounting Research 19 (1): 1-48.
5. Burgstahler, D., and I. Dichev. 1997. Earnings, adaptation, and equity value. The Accounting Review 72 (2): 187-215.
6. Easton, P. 2004. PE ratios, PEG ratios, and estimating the implied expected rate of return on equity capital. The Accounting Review 79 (1): 73-95.
7. Feltham, G., and J. Ohlson. 1995. Valuation and clean surplus accounting for operating and financial statements. Contemporary Accounting Research 11 (2): 689-731.
8. Feltham, G., and J. Ohlson. 1996. Uncertainty resolution and the theory of depreciation measurement. Journal of Accounting Research 34 (2): 209-34.
9. Gode, D., and J. Ohlson. 2004. Accounting-based valuation with changing interest rates. Review of Accounting Studies 9 (4): 419-41.
10. Gordon, M. 1959. Dividends, earnings, and stock prices. Review of Economics and Statistics 41 (2): 99-105.
11. Hand, J. 2001. Discussion of "Earnings, book values, and dividends in equity valuation: An empirical perspective". Contemporary Accounting Research 18 (1): 121-30.
12. Hayn, C. 1995. The information content of losses. Journal of Accounting and Economics 20 (2): 125-53.
13. Miller, M., and F. Modigliani. 1961. Dividend policy, growth and the valuation of shares. Journal of Business 34 (4): 411-33.
14. Liu, J., D. Nissim, and J. Thomas. 2002. Equity valuation using multiples. Journal of Accounting Research 40 (1): 135-72.
15. O'Hanlon, J., and K. Peasnell. 2002. Residual income and value-creation: The missing link. Review of Accounting Studies 7 (2-3): 229-45.
16. Ohlson, J. A. 1991. The theory of value and earnings, and an introduction to the Ball-Brown analysis. Contemporary Accounting Research 8 (1): 1-19.
17. Ohlson, J. 1995. Earnings, book values, and dividends in security valuation. Contemporary Accounting Research 11 (2): 661-87.
18. Ohlson, J., and B. Juettner-Nauroth. 2004. Expected EPS and EPS growth as determinants of value. Review of Accounting Studies 10 (forthcoming).
19. Ohlson, J., and M. Ozair. 2004. Growth in expected earnings and accrual accounting. Working paper, New York University.
20. Ohlson, J., and X. J. Zhang. 1998. Accrual accounting and equity valuation. Journal of Accounting Research 36 (Supplement): 85-111.
21. Penman, S., and T. Sougiannis. 1997. The dividend displacement property and the substitution of anticipated earnings for dividends in equity valuation. The Accounting Review 72 (1): 1-21.
22. Penman, S. H. 1998. Combining earnings and book value in equity valuation. Contemporary Accounting Research 15 (3): 291-324.
23. Pope, P., and P. Wang. 2003. Positive (zero) NPV projects and the behavior of residual earnings: Discussion and extension. Journal of Business Finance and Accounting 30 (1-2): 16-23.
24. Ryan, S. 1988. Structural models of the accounting process and earnings. PhD dissertation, Stanford Business School.
25. Subramanyam, K. R., and J. Wild. 1996. Going concern status, earnings persistence, and informativeness of earnings. Contemporary Accounting Research 13 (1): 251-73.
26. Yee, K. 2000. Opportunities knocking! Residual income valuation of an adaptive firm. Journal of Accounting, Auditing, and Finance 15 (3): 225-66.
27. Yee, K. 2001. Miller-Modigliani invariant valuation functions. PhD dissertation, Stanford Business School.
28. Yee, K. 2004. Forward versus trailing earnings in equity valuation. Review of Accounting Studies 9 (2-3): 301-29.
29. Yee, K. 2005a. Boom! Growth opportunities on and off the balance sheet. Working paper, Columbia University.
30. Yee, K. 2005b. Mergers and acquisitions accounting: A valuation perspective. Working paper, Columbia University.
31. Zhang, G. 2000. Accounting information, capital investment decisions, and equity valuation: Theory and empirical implications. Journal of Accounting Research 38 (2): 271-95.
32. Zhang, X. J. 2000. Conservative accounting and equity valuation. Journal of Accounting and Economics 29 (1): 125-49.