IDEAS home Printed from https://ideas.repec.org/p/boc/dsug05/06.html
   My bibliography  Save this paper

Who do you trust while bubbles grow and blow? A comparative analysis of the explanatory power of accounting and patent information for the market values of German firms

Author

Listed:
  • Fred Ramb

    (Deutsche Bundesbank)

  • Markus Reitzig

    (Copenhagen Business School)

Abstract

We present a theoretical and empirical analysis of the fitness of national German (German Commercial Code ­ Handelsgesetzbuch (HGB)) and international (IAS and US-GAAP) accounting information, as well as European patent data to explain the market values of German manufacturing firms. For the chosen volatile period from 1997 to 2002, cautious national accounting information does not correlate with the firms' residual market values (RMV). International accounting information makes no meaningful contribution to explaining firms' RMV and seems to measure over-investment only. Finally, patents counted at the individual country level correlate with the firms' RMV. To the best of our knowledge this is the first paper which use a panel fixed effects estimator for a non-linear equation. We estimate the model using an algorithm programmed with Stata and Ox.

Suggested Citation

  • Fred Ramb & Markus Reitzig, 2005. "Who do you trust while bubbles grow and blow? A comparative analysis of the explanatory power of accounting and patent information for the market values of German firms," German Stata Users' Group Meetings 2005 06, Stata Users Group.
    • Handle: RePEc:boc:dsug05:06
    as

    Download full text from publisher

    File URL: http://repec.org/dsug2005/Ramb.ppt
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    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:boc:dsug05:06. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Christopher F Baum (email available below). General contact details of provider: https://edirc.repec.org/data/stataea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.