An Empirical Test of the Feltham-Ohlson (1995) Model

• Main Authors: SEGAL, Dan, Callen, Jeffrey L.
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2005
• Subjects: Feltham–Ohlson; equity valuation; conservatism; net operating assets; growth; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/807; http://dx.doi.org/10.1007/s11142-005-4208-3
• Institution: Singapore Management University

This paper tests the Feltham–Ohlson (1995) model by transforming the undefined “other information” variables into expectational variables, as suggested by Liu and Ohlson [Liu and Ohlson (2000). Journal of Accounting, Auditing and Finance 15, 321–331]. The signs of the estimated coefficients conform...