An empirical analysis of the relative relation of accounting earning and book value in KOSDAQ markets
Asian Tax Journal Vol. 6 No. 3 (2005), pp. 29-54
Abstract
Recent studies have provided theory and evidence that the relation between firm value and accounting earnings is decrease, the other hand the relation between firm value and book value is increase. Thus, we tests the relative relation of accounting earnings and book value in the KOSDAQ Markets. Our primary test show that accounting earnings is more relevant than book value to the firm value in the profit firms, but in the loss firms, it is less relevant than book value. Our test results also show that value relevance of accounting earning has been declined, contrary to the that book value since 1999.
Keywords
- KOSDAQ
- Accounting Earnings
- Book Value
- Value Relevance
- Relative Value Relevance.
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