Exploring market multiples accuracy for professional practices: sales is the value anchor but profitability and location matter too
Author
Abstract
Suggested Citation
DOI: 10.1007/s10997-021-09585-7
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Fama, Eugene F & French, Kenneth R, 1992. "The Cross-Section of Expected Stock Returns," Journal of Finance, American Finance Association, vol. 47(2), pages 427-465, June.
- Joseph McCahery & Erik Vermeulen, 2012. "Private equity regulation: a comparative analysis," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(2), pages 197-233, May.
- David Schröder & Andrew Yim, 2018. "Industry Effects in Firm and Segment Profitability Forecasting," Contemporary Accounting Research, John Wiley & Sons, vol. 35(4), pages 2106-2130, December.
- Ittner, CD & Larcker, DF, 1998. "Are nonfinancial measures leading indicators of financial performance? An analysis of customer satisfaction," Journal of Accounting Research, Wiley Blackwell, vol. 36, pages 1-35.
- Eli Amir & Theodore Sougiannis, 1999. "Analysts' Interpretation and Investors' Valuation of Tax Carryforwards," Contemporary Accounting Research, John Wiley & Sons, vol. 16(1), pages 1-33, March.
- Erik Døving & Paul N. Gooderham, 2008. "Dynamic capabilities as antecedents of the scope of related diversification: the case of small firm accountancy practices," Strategic Management Journal, Wiley Blackwell, vol. 29(8), pages 841-857, August.
- Holthausen, Robert W. & Watts, Ross L., 2001. "The relevance of the value-relevance literature for financial accounting standard setting," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 3-75, September.
- Volker Herrmann & Frank Richter, 2003. "Pricing With Performance-Controlled Multiples," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 55(3), pages 194-219, July.
- Amir, Eli & Lev, Baruch, 1996. "Value-relevance of nonfinancial information: The wireless communications industry," Journal of Accounting and Economics, Elsevier, vol. 22(1-3), pages 3-30, October.
- Robert J. Bennett & Paul J. A. Robson, 1999. "The use of external business advice by SMEs in Britain," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 11(2), pages 155-180, April.
- Kaplan, Steven N & Ruback, Richard S, 1995.
"The Valuation of Cash Flow Forecasts: An Empirical Analysis,"
Journal of Finance, American Finance Association, vol. 50(4), pages 1059-1093, September.
- Steven N. Kaplan & Richard S. Ruback, 1994. "The Valuation of Cash Flow Forecasts: An Empirical Analysis," NBER Working Papers 4724, National Bureau of Economic Research, Inc.
- Matthew D. Cain & David J. Denis, 2010. "Do Fairness Opinion Valuations Contain Useful Information?," Purdue University Economics Working Papers 1244, Purdue University, Department of Economics.
- Breusch, T S & Pagan, A R, 1979. "A Simple Test for Heteroscedasticity and Random Coefficient Variation," Econometrica, Econometric Society, vol. 47(5), pages 1287-1294, September.
- S. Ciccotosto & R. Nandan & D.B. Smorfitt, 2008. "Issues Facing Small Accounting Practices in Regional North Queensland: An Exploratory Study," Australian Accounting Review, CPA Australia, vol. 18(4), pages 324-333, December.
- Pascal Nguyen & Nahid Rahman & Ruoyun Zhao, 2018. "CEO characteristics and firm valuation: a quantile regression analysis," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 22(1), pages 133-151, March.
- Dale Wadeson & Susan Ciccotosto, 2013. "Succession Planning in Small Accounting Practices in Regional Far North Queensland," Australian Accounting Review, CPA Australia, vol. 23(2), pages 177-188, June.
- Ran Barniv & Mark Myring, 2006. "An International Analysis of Historical and Forecast Earnings in Accounting‐Based Valuation Models," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 33(7‐8), pages 1087-1109, September.
- Sanjeev Bhojraj & Charles M. C. Lee, 2002. "Who Is My Peer? A Valuation‐Based Approach to the Selection of Comparable Firms," Journal of Accounting Research, Wiley Blackwell, vol. 40(2), pages 407-439, May.
- Ran Barniv & Mark Myring, 2006. "An International Analysis of Historical and Forecast Earnings in Accounting-Based Valuation Models," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 33(7-8), pages 1087-1109.
- Allen, Linda, et al, 2004. "The Role of Bank Advisors in Mergers and Acquisitions," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 36(2), pages 197-224, April.
- Jing Liu & Doron Nissim & Jacob Thomas, 2002. "Equity Valuation Using Multiples," Journal of Accounting Research, Wiley Blackwell, vol. 40(1), pages 135-172, March.
- Trueman, B & Wong, MHF & Zhang, XJ, 2000. "The eyeballs have it: Searching for the value in internet stocks," Journal of Accounting Research, Wiley Blackwell, vol. 38, pages 137-162.
- Wm. Gerard Sanders & Steven Boivie, 2004. "Sorting things out: valuation of new firms in uncertain markets," Strategic Management Journal, Wiley Blackwell, vol. 25(2), pages 167-186, February.
- Shevlin, Terry, 1996. "The value-relevance of nonfinancial information: A discussion," Journal of Accounting and Economics, Elsevier, vol. 22(1-3), pages 31-42, October.
- Chiung-Ju Liang & Ming-Li Yao, 2005. "The Value-Relevance of Financial and Nonfinancial Information—Evidence from Taiwan’s Information Electronics Industry," Review of Quantitative Finance and Accounting, Springer, vol. 24(2), pages 135-157, January.
- Hirschey, Mark & Richardson, Vernon J & Scholz, Susan, 2001. "Value Relevance of Nonfinancial Information: The Case of Patent Data," Review of Quantitative Finance and Accounting, Springer, vol. 17(3), pages 223-235, November.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Soenke Sievers & Christopher F. Mokwa & Georg Keienburg, 2012. "The Relevance of Financial versus Non-Financial Information for the Valuation of Venture Capital-Backed Firms," European Accounting Review, Taylor & Francis Journals, vol. 22(3), pages 467-511, September.
- Marc Deloof & Wouter De Maeseneire & Koen Inghelbrecht, 2009. "How Do Investment Banks Value Initial Public Offerings (IPOs)?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 36(1‐2), pages 130-160, January.
- Marc Deloof & Wouter De Maeseneire & Koen Inghelbrecht, 2009.
"How Do Investment Banks Value Initial Public Offerings (IPOs)?,"
Journal of Business Finance & Accounting,
Wiley Blackwell, vol. 36(1‐2), pages 130-160, January.
- Marc Deloof & Wouter De Maeseneire & Koen Inghelbrecht, 2009. "How Do Investment Banks Value Initial Public Offerings (IPOs)?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 36(1-2), pages 130-160.
- Aharon, David Y. & Gavious, Ilanit & Yosef, Rami, 2010. "Stock market bubble effects on mergers and acquisitions," The Quarterly Review of Economics and Finance, Elsevier, vol. 50(4), pages 456-470, November.
- Frank Asche & Bård Misund, 2016.
"Who’s a major? A novel approach to peer group selection: Empirical evidence from oil and gas companies,"
Cogent Economics & Finance, Taylor & Francis Journals, vol. 4(1), pages 1264538-126, December.
- Asche, Frank & Misund, Bard, 2015. "Who's a major? A novel approach to peer group selection: Empirical evidence from oil and gas companies," UiS Working Papers in Economics and Finance 2015/18, University of Stavanger.
- Dittmann, Ingolf & Weiner, Christian, 2005. "Selecting comparables for the valuation of European firms," SFB 649 Discussion Papers 2005-002, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
- Neeraj J. Gupta & Joseph Golec, 2012. "Do Investors Use Customer Metrics To Value High Growth Service Firms?," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 6(2), pages 1-19.
- Skočir, Matevž & Lončarski, Igor, 2024. "On the importance of asset pricing factors in the relative valuation," Research in International Business and Finance, Elsevier, vol. 70(PB).
- Forte, Gianfranco & Gianfrate, Gianfranco & Rossi, Emanuele, 2020. "Does relative valuation work for banks?," Global Finance Journal, Elsevier, vol. 44(C).
- Semenova, Natalia & Hassel, Lars & Nilsson, Henrik, 2009. "The Value Relevance of Environmental and Social Performance: Evidence from Swedish SIX 300 Companies," Sustainable Investment and Corporate Governance Working Papers 2009/4, Sustainable Investment Research Platform.
- Dittmann, I. & Maug, E.G., 2006.
"Valuation Biases, Error Measures, and the Conglomerate Discount,"
ERIM Report Series Research in Management
ERS-2006-011-F&A, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
- Dittmann, Ingolf & Maug, Ernst, 2007. "Valuation biases, error measures, and the conglomerate discount [Biases and error measures : how to compare valuation methods]," Papers 07-37, Sonderforschungsbreich 504.
- Dittmann, Ingolf & Maug, Ernst, 2007. "Valuation Biases, Error Measures, and the Conglomerate Discount," Sonderforschungsbereich 504 Publications 07-37, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
- Emanuel Bagna & Enrico Cotta Ramusino, 2016. "Accounting-Based Valuation Using Market Multiples: The Case Of Cyclical Companies," DEM Working Papers Series 126, University of Pavia, Department of Economics and Management.
- Soenke Sievers & Jan Klobucnik, 2011. "Valuing high technology growth firms," Cologne Graduate School Working Paper Series 02-07, Cologne Graduate School in Management, Economics and Social Sciences.
- Bixia Xu & Michel L. Magnan & Paul E. André, 2007. "The Stock Market Valuation of R&D Information in Biotech Firms," Contemporary Accounting Research, John Wiley & Sons, vol. 24(4), pages 1291-1318, December.
- repec:hum:wpaper:sfb649dp2005-002 is not listed on IDEAS
- Caylor, Marcus & Cecchini, Mark & Winchel, Jennifer, 2017. "Analysts' qualitative statements and the profitability of favorable investment recommendations," Accounting, Organizations and Society, Elsevier, vol. 57(C), pages 33-51.
- Elnathan, Dan & Gavious, Ilanit & Hauser, Shmuel, 2010. "An analysis of private versus public firm valuations and the contribution of financial experts," The International Journal of Accounting, Elsevier, vol. 45(4), pages 387-412, December.
- Mustafa Ciftci & Nan Zhou, 2016. "Capitalizing R&D expenses versus disclosing intangible information," Review of Quantitative Finance and Accounting, Springer, vol. 46(3), pages 661-689, April.
- Yin‐Hua Yeh & Pei‐Gi Shu & Re‐Jin Guo, 2008. "Ownership Structure and IPO Valuation—Evidence from Taiwan," Financial Management, Financial Management Association International, vol. 37(1), pages 141-161, March.
- Eric Cauvin & Pierre-Laurent Bescos, 2005. "Nature Et Caracteristiques Des Informations Utilisees Par Les Entreprises Françaises Dans Le Cadre De Leur Communication Financiere : Une Etude Empirique," Post-Print halshs-00581142, HAL.
- Wen-Shiung Lee, 2013. "Merger and acquisition evaluation and decision making model," The Service Industries Journal, Taylor & Francis Journals, vol. 33(15-16), pages 1473-1494, December.
More about this item
Keywords
Valuation; Prediction accuracy; Value relevance; Small accounting practices; Private equity;All these keywords.
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jmgtgv:v:26:y:2022:i:4:d:10.1007_s10997-021-09585-7. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.