Valuation of loss firms in a knowledge-based economy |
| |
Authors: | Masako Darrough Jianming Ye |
| |
Institution: | (1) Baruch College-CUNY, One Bernard Baruch Way, New York, NY 10010, USA |
| |
Abstract: | Recent research in accounting has documented a substantial increase in the number of loss firms. Existing theories on the
valuation of loss firms are based on adaptation/abandonment options or limited liability, assuming that these firms are operationally
distressed. In this paper, we show that many loss firms do not fit this stereotype and identify the primary value drivers
of this new type of loss firms. Our analysis helps resolve the puzzling negative relation between earnings and market value
documented in prior research. Overall, our findings underscore the importance of “hidden assets” or intangibles in the study
of loss firms.
|
| |
Keywords: | Loss firms Accounting conservatism R& D expensing Sustainability |
本文献已被 SpringerLink 等数据库收录! |