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Earnings, Book Values, and Dividends in Equity Valuation: An Empirical Perspective

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

Abstract

This paper revisits Ohlson 1995 to make a number of points not generally appreciated in the literature. First, the residual income valuation (RIV) model does not serve as a crucial centerpiece in the analysis. Instead, RIV plays the role of condensing and streamlining the analysis, but without any effect on the substantive empirical conclusions. Second, the concept of "other information" in the model can be given concrete empirical content if one presumes that next-period expected earnings are observable.
Original languageEnglish
Pages (from-to)107-120
JournalContemporary Accounting Research
Volume18
Issue number1
DOIs
Publication statusPublished - Mar 2001
Externally publishedYes

Bibliographical note

Publication details (e.g. title, author(s), publication statuses and dates) are captured on an “AS IS” and “AS AVAILABLE” basis at the time of record harvesting from the data source. Suggestions for further amendments or supplementary information can be sent to [email protected].

Research Keywords

  • Accounting data
  • Equity valuation
  • Expected earnings
  • Residual income valuation

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