A COMPARISON OF EXPLANATORY POWER BETWEEN RESIDUAL INCOME VALUATION AND ABNORMAL EARNINGS GROWTH MODELS IN DETERMINING THE VALUE OF COMPANIES

Q: How can I download an article?

To download an article from SID, first log in to the site, search for the article title, and click on the 'Download Article' option.

Q: How can I download an ISI article?

To download an ISI article on SID, enter the keyword or article title in the search bar, view the relevant results, click on the desired article, and select the 'Download Article' option.

Q: How can I access the SID database?

To access the SID database, visit SID.ir, create an account, and log in to access scientific resources.

Q: Is downloading articles from SID free?

Some articles on SID are available for free, while others require payment. Details are specified on the article's page.

MAHMOUDABADI H.; BAYAZIDI A.

Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Journal Paper

Paper Information

Journal: THE IRANIAN ACCOUNTING AND AUDITING REVIEW Year:2009 | Volume:15 | Issue:54 Page(s): 101-116

Download Full-Text

مرکز اطلاعات علمی Scientific Information Database (SID) - Trusted Source for Research and Academic Resources

Persian Verion

View:

1,617

Download:

Cites:

Information Journal Paper

Title

A COMPARISON OF EXPLANATORY POWER BETWEEN RESIDUAL INCOME VALUATION AND ABNORMAL EARNINGS GROWTH MODELS IN DETERMINING THE VALUE OF COMPANIES

Author(s)

MAHMOUDABADI H. | BAYAZIDI A. | Issue Writer Certificate

Keywords

VALUATION OF COMPANYQ3

RESIDUAL INCOMEQ2

ABNORMAL EARNINGSQ3

CLEAN SURPLUSQ3

Abstract

The aim of this study was to compare the explanatory power between two models of RESIDUAL INCOME valuation and ABNORMAL EARNINGS growth in determining the value of admitted companies in Tehran Security Exchange. According to the model of RESIDUAL INCOME valuation, the value of the company follows book value of equity and earnings by CLEAN SURPLUS accounting method and the value of the company follows ABNORMAL EARNINGS over time, based on abnormal income growth model. ABNORMAL EARNINGS are exceed earnings of a company accounted according to imposed capital costs over time. Our study sample included 177 companies during 2002 to 2007. As the findings showed, none of the hypotheses verified significant difference between explanatory powers in two models. The findings also indicated that there was a significant relationship between the company value and accounting variables but there wasn't a significant difference between explanatory power in determining the company values. It was also revealed that explanatory power of RESIDUAL INCOME valuation model was relatively higher than ABNORMAL EARNINGS growth model in all cases.However, it should be noted that there were two independent variables in RESIDUAL INCOME valuation model but one independent variable in ABNORMAL EARNINGS growth model.

Cites

References

Cite

APA: Copy

MAHMOUDABADI, H., & BAYAZIDI, A.. (2009). A COMPARISON OF EXPLANATORY POWER BETWEEN RESIDUAL INCOME VALUATION AND ABNORMAL EARNINGS GROWTH MODELS IN DETERMINING THE VALUE OF COMPANIES. THE IRANIAN ACCOUNTING AND AUDITING REVIEW, 15(54), 101-116. SID. https://sid.ir/paper/8183/en

Vancouver: Copy

MAHMOUDABADI H., BAYAZIDI A.. A COMPARISON OF EXPLANATORY POWER BETWEEN RESIDUAL INCOME VALUATION AND ABNORMAL EARNINGS GROWTH MODELS IN DETERMINING THE VALUE OF COMPANIES. THE IRANIAN ACCOUNTING AND AUDITING REVIEW[Internet]. 2009;15(54):101-116. Available from: https://sid.ir/paper/8183/en

IEEE: Copy

H. MAHMOUDABADI, and A. BAYAZIDI, “A COMPARISON OF EXPLANATORY POWER BETWEEN RESIDUAL INCOME VALUATION AND ABNORMAL EARNINGS GROWTH MODELS IN DETERMINING THE VALUE OF COMPANIES,” THE IRANIAN ACCOUNTING AND AUDITING REVIEW, vol. 15, no. 54, pp. 101–116, 2009, [Online]. Available: https://sid.ir/paper/8183/en

Related Journal Papers