haku: @indexterm VALUATION / yhteensä: 677
viite: 201 / 677
| Tekijä: | Eberhart, A. C. |
| Otsikko: | Comparable firms and the precision of equity valuations |
| Lehti: | Journal of Banking and Finance
2001 : APR, VOL. 25:4, p. 1367-1400 |
| Asiasana: | VALUATION CORPORATE FINANCE INFORMATION INFORMATION TECHNOLOGY |
| Kieli: | eng |
| Tiivistelmä: | The author investigates the relationship between the amount of information provided by a firm's comparables (i.e., firms in the same line of business as the firm being valued) and the precision of the firm's equity valuation. When investors have more information, previous studies argue that investors can make a more precise estimate of a firm's true equity value and this implies a lower (excess) stock return volatility around corporate events such as earnings announcements. The author develops a simple model that shows a negative relationship between the amount of information provided by a firm's comparables and the firm's stock return volatility. The author consistently finds a negative and significant relationship between these information measures and stock return volatility, ceteris paribus. |
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