Research on Relations between Fair Value and Stock Value

The enterprise market value includes the fair value of net assets, the fair value of residual income, and the impact of Non-Economic Factors on share prices. In addition to the fair value of net assets, the measurement of enterprise excess profitability (Self-created Goodwill) could revise the diffe...

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Bibliographic Details
Main Authors: Zhi-liang Wang, Yu-jie Wang
Format: Conference Proceeding
Language:English
Subjects:
Companies
Cost accounting
Equations
Lead
Mathematical model
Profitability
Stock markets
Online Access:Request full text
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Summary:The enterprise market value includes the fair value of net assets, the fair value of residual income, and the impact of Non-Economic Factors on share prices. In addition to the fair value of net assets, the measurement of enterprise excess profitability (Self-created Goodwill) could revise the differences between the fair value of financial statements' items and the stock value, and help the fair value to regain the value relevance. The Non-Economic Factors should be considered not only during the value relevance test, but also when to explain the results.
DOI:10.1109/ICMSS.2011.5998481