The Value Spread as a Predictor of Returns

Recent studies have used the value spread to predict aggregate stock returns to construct cash-flow betas that appear to explain the size and value anomalies. We show that two related variables, the book-to-market spread (the book-to-market of value stocks minus that of growth stocks) and the market-to-book spread (the market-to-book of growth stocks minus that of value stocks) predict returns in different directions and exhibit opposite cyclical variations. Most important, the value spread mixes information on the book-to-market and market-to-book spreads, and appears much less useful in predicting returns.

Does the information environment affect the value relevance of financial statement data?

Recent studies demonstrate that the usefulness of financial statement data for valuation of stocks varies depending on specific economy- and firm-level conditions. This empirical study identifies a novel firm-level influential condition. It hypothesizes and finds that for firms that trade at a premium to book value the value-relevance of two fundamental financial statement value drivers (i.e. earnings and book value), is negatively related to the level of sophistication of the firm's information environment. However, for firms that trade at a discount to book value, the level of sophistication of information environment does not affect the value-relevance of these financial statement value drivers. The level of complexity of the firm's information environment is proxied by the firm's capitalized value. The empirical analysis is based on a sample of nonfinancial firms listed on the London Stock Exchange

THE ANALYSIS OF E-BOOK QUALITY

The integration of technology at learning process at SMK N 1 Sedayu quite less. The purpose of this research was to analysis the E-book quality. In this research the researcher analyze the E-book feasibility of E-book. The feasibility aspects were Availability, Customization Display, Portability and Usability. The research was using descriptive quantitative method according to theories of E-book standard quality. The analysis of E-book passed through: (1)Implementation of E-book and (2)Analysis of E-book. This research was held from December 5th up to December 17th 2011. The data were collected in SMK Negeri 1 Sedayu. The respondents were 30 students from grade X of Computer and Network Engineering. Data collection for Usability used questionnaire with a 5 scale answer. The result of interpretation from quantitative value was then converted into qualitative description value. The average score of students interpretation was 3.91 and this E-book was a Good E-book. Keyword: E-book, E-book standard qualit

The Effect of Fair vs. Book Value Accounting on the Behavior of Banks

This paper studies the effect of book versus fair value accounting on a bank's (re)investment behavior, risk of default, investment value, and the need for regulation. Adopting the wide--spread view that fair value accounting reduces the degree of asymmetric information, it shows that fair value accounting increases liquidity. Consequently, it intensifies risk shifting and, therefore, increases the need for regulation and the risk of default. For highly leveraged institutions the increased risk shifting under fair value accounting outweighs an underinvestment of book value accounting and ultimately reduces welfare.fair value accounting, book value accounting, asymmetric information, banking regulation, liquidity

The Separate Valuation Relevance of Earnings, Book Value and their Components in Profit and Loss Making Firms: UK Evidence

This study examines the separate value relevance of earnings, book value and their components in profit and loss-making firms. The investigation take place in a context that both profit and loss-making firms have different features that might affect conclusions concerning the value relevance of earnings and book value partitions. Thus, we are establishing relationships between disaggregated accounting data and the market value of firms in the profit and loss-making firms in cross-sectional valuation models. These results suggest that for loss-making firms, earnings and book value partitions are not generally valuation relevant. However, for profit-making firms, the earnings partition into working capital from operations and non-current accruals is valuation relevant in almost all cross-sections. Book value partitions have also some valuation relevance for profit-making firms, in the presence of earnings partitions.earnings, book value, loss making firms, value relevance

A more realistic valuation: APV and WACC with constant book leverage ratio

We value a company that targets its capital structure in book-value terms. This capital structure definition provides us with a valuation that lies between those of Modigliani-Miller (fixed debt) and Miles-Ezzell (fixed market-value leverage ratio). We show that if a company targets its leverage in market-value terms, it has less value than if it targets the leverage in book-value terms. We also present empirical evidence that permits us to conclude that debt is more related to the book-value of the assets than to their market-value.value of tax shields; required return to equity; company valuation; cost of equity;

Pengaruh Book Value (BV), Price to Book Value (PBV), Earning Per Share (EPS), Dan Price Earning Ratio (PER) Terhadap Harga Saham Perusahaan Food and Beverage Yang Terdaftar Di Bursa Efek Indonesia Tahun 2007 – 2010

This research aimed to analyze the influence of Book Value (BV), Price to Book Value(PBV), Earning Per Share (EPS), and Price Earning Ratio (PER) to the stock price of food and beveragecompanies listed in Indonesian Stock Exchange in 2007-2010. The population in this research was 18companies and the samples in this research were 16 food and beverage companies in Indonesia StockExchange in 2007-2010. This research used method of nonprobability sampling, that was purposivesampling and in determining samples, it used judgment sampling. While the analysis instrument in thisresearch was multiple linear regression. The simultaneous regression testing (F-test) indicated that thevariable of Price to Book Value (PBV), Earning Per Share (EPS), and Price Earning Ratio (PER) hadsignificant influence to the stock price. It could be proved from the F value (6,012) was bigger than Ftable (2.79). In the partial regression testing (t-test), the variable of Price to Book Value (PBV) did nothave siginificant influence to the stock price with t value (-1,737) was bigger than -t table (-2,0049).Meanwhile, the Earning Per Share (EPS) variable had siginificant influence to the stock price with t value(340,925) was bigger than t table (2,0049) and the Price Earning Ratio (PER) variable also had noinfluence with t value(103,571) was bigger than t table (2,0049)

Spiritual Values and Evaluations

This book explores three easily recognized personality types of great spiritual significance--worldliness, ideology, and saintliness. These spiritual types are defined by the dominant values they manifest--extrinsic, systemic, or intrinsic. The thoughts, experiences, actions, feelings, and overall characters and behaviors of people belonging to these types are shaped and expressed by what and how they value, as the chapters in the book explain. A distinctive mode of spirituality is correlated with each type, based on what and how religious people most value. What and how people value are the keys to everyone's personalities, whether spiritual or not. Real people do not fall neatly or completely into any one of these types, but in most people some dimension of value is dominant over the others, and this has great spiritual, moral, and practical significance

Value-relevance of expensed and capitalized intangibles - a French survey

Significant difference exists between the market value and book value of firms. It could be attributed to the fact that intangible assets are not reflected in the financial statements. Our resuls indicate a statistical association between the "capitalized goodwill" and the market-to-book ratio, but do not indicate any statistical link with the "expensed intangible-intensity" nor the "capitalized intangible-intensity". These results support and contradict, for a part, the explanation on the loss of value relevance of financioal information, which could be due to the non-recognized intangibles in financial statements. However, the differing French and American accounting treatments of intangible expenditures may explain why these expenses are not taken into account by french capital markets when estimating the value of companies.Intangible intensity; Market-to-Book ratio; Value-relevance; Goodwill; Capital markets; Ohlson model

Facilitation and Internalization Optimal Strategy in a Multilateral Trading Context

This paper studies four trading algorithms of a professional trader at a multilateral trading facility, observing a realistic two-sided limit order book whose dynamics are driven by the order book events. The identity of the trader can be either internalizing or regular, either a hedge fund or a brokery agency. The speed and cost of trading can be balanced by properly choosing active strategies on the displayed orders in the book and passive strategies on the hidden orders within the spread. We shall show that the price switching algorithms provide lower and upper bounds of the mixed trading algorithms. Especially, when the internalization premium is zero, an internalizing trader's optimal mixed trading strategy can be achieved among the set of price switching strategies. For both an internalizing trader and a regular trader, the optimal price switching strategy exists and is expressed in terms of the value function. A parallelizable algorithm to numerically compute the value function and optimal price switching strategy for the discretized state process is provided.Comment: 40 pages; 7 figures; 1 tabl