Valuation of loss firms in a knowledge-based economy

被引：1
作者：
Masako Darrough
Jianming Ye
机构：
[1] Baruch College-CUNY,
来源：
Review of Accounting Studies | 2007年 / 12卷
关键词：
Loss firms; Accounting conservatism; R&D expensing; Sustainability; G12; M41;
D O I：
暂无
中图分类号：
学科分类号：
摘要：
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.
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页码：61 / 93
页数：32
相关论文
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