Abstract
In this, the closing chapter, we discuss the limitations of the extant valuation research and suggest possible directions for moving the literature forward. We also explore the links between accounting-based valuation and other research topics and provide our thoughts on how the development of valuation theory can benefit inquiries into other accounting issues.
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Notes
- 1.
This does not mean, however, that these models deny that an information asymmetry exists in the absence of financial reporting. What is implicitly maintained is that accounting is a necessary means to portray the firm’s operation and that reported accounting data serve as the basis for market valuation; this premise is in line with the objectives of financial reporting.
- 2.
Indeed, Demski (2004) observes that endogeneity is present over a wide spectrum of research topics in accounting.
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Zhang, G. (2014). Limitations and Future Directions. In: Accounting Information and Equity Valuation. Springer Series in Accounting Scholarship, vol 6. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-8160-7_13
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