What determines residual income?

• 主要作者: CHENG, Qiang
• 格式: text
• 語言: English
• 出版: Institutional Knowledge at Singapore Management University 2005
• 主題: equity valuation; residual income valuation model; economic rents; conservative accounting; Accounting; Corporate Finance
• 在線閱讀: https://ink.library.smu.edu.sg/soa_research/831; https://ink.library.smu.edu.sg/context/soa_research/article/1830/viewcontent/SSRN_id282468.pdf

This paper investigates the determinants of residual income scaled by book value of equity, i.e., abnormal return on equity (ROE), by analyzing the impact of value-creation (economic rents) and value-recording (conservative accounting) processes on abnormal ROE. I rely on economic theories to charac...