Abstract
In the preceding chapters, the value of a marketed security is represented as the net present value of risk-adjusted expected dividends. The expectations change with the information received by investors, and accounting reports could be a source of that information. Furthermore, even if accounting reports are not the source, accounting numbers may be used in representing investor information. However, the representations used in prior chapters are abstract and provide little direct insight as to how accounting numbers relate to market values.
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Christensen, P.O., Feltham, G.A. (2003). Relation between Market Values and Future Accounting Numbers. In: Economics of Accounting. Springer Series in Accounting Scholarship, vol 1. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-1133-5_9
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DOI: https://doi.org/10.1007/978-1-4615-1133-5_9
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