Value-relevance of nonfinancial information: The wireless communications industry

• 成果类型: Article
• 署名作者: Amir, E; Lev, B
• 署名单位: University of California System; University of California Berkeley; Columbia University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/S0165-4101(96)00430-2
• 发表日期: 1996
• 关键词: STOCK RETURNS; valuation; DISCLOSURES; earnings; MARKETS; price

摘要

We examine the value-relevance to investors of financial (accounting) and nonfinancial information of independent cellular companies and find that, on a stand-alone basis, financial information (earnings, book values, and cash flows) are largely irrelevant for security valuation. Nonfinancial indicators, such as POPS (a growth proxy) and Market Penetration (an operating performance measure), are highly value-relevant. However, combined with nonfinancial information, earnings do contribute to the explanation of prices. The complementarity between financial and nonfinancial data is highlighted in this study.