Topic
Embedded value
About: Embedded value is a research topic. Over the lifetime, 343 publications have been published within this topic receiving 8853 citations.
Papers published on a yearly basis
Papers
TL;DR: In this article, the authors argue that the purpose of an accounting system should be to provide a depository's managers, owners, and insurer-regulator with a picture of current economic reality, so that private and public decisions concerning that depository have a proper explanation.
Abstract: The U.S. system of depository insurance is in crisis. Because of the large-scale insolvencies of hundreds of savings and loan associations (thrifts), the Federal Savings and Loan Insurance Corporation (FSLIC) has suffered a massive insolvency. The Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) calls for tens of billions of dollars of general Treasury revenues to cover these insolvencies; it also requires substantial contributions by the remaining healthy part of the thrift industry. Insurance premiums will be raised for commercial banks as well, to cover past and prospective losses in their insurance fund. Proposals for the reform of depository insurance are, consequently, coming to the fore. Risk-based insurance premiums, risk-based net worth (capital) requirements, tougher and earlier regulatory intervention, reduced economic powers, reduced insurance coverage, and “narrow” (risk-free) banks have been frequently mentioned. ’ Risk-based net worth standards are explicitly endorsed by the FIRREA. Less frequently mentioned, however, is a possible reform of the accounting framework used by depositories.2 This neglect is unfortunate, because a reformed accounting framework-one that tries to capture current market values rather than historical costs-could yield substantial improvements in the quality of private and public decisions. The argument of this paper can be summarized as follows: the purpose of an accounting system should be to provide a depository’s managers, owners, and insurer-regulator with a picture of current economic reality, so that private and public decisions concerning that depository have a proper
19 citations
TL;DR: In this paper, the authors investigated whether more refined firm categorization and an increase in the number of variables analyzed would yield more robust information on value creation measures that financial decision-makers can use.
Abstract: In the last two decades, numerous studies have been conducted to find sources and explanations for value creation and the value drivers of share returns or shareholder value creation by firms. This study aimed to determine whether more refined firm categorization and an increase in the number of variables analyzed would yield more robust information on value creation measures that financial decision-makers can use. Four different categories of firms were compiled. For each category, 11 different internal performance measures were regressed against two different external shareholder value creation measures. The empirical results show that different value creation measures explain shareholder value creation best for different categories of firms. Economic-based indicators provide higher information content than accounting-based indicators for financial decision-making. The information content of internal value drivers varied when different external shareholder value indicators were used. This study provides financial decisionmakers with a more specific indication of the use of shareholder value creation measures for specific firm types.
19 citations
TL;DR: In this paper, the authors proposed the concept of higher education institutions (HEIs) offering educational services based on value for money, where the value is determined based on customers' expectations of the service and the costs in comparison to the competitors.
Abstract: Purpose – The purpose of this paper is to propose the concept of higher education institutions (HEIs) offering educational services based on value for money. The value is determined based on customers’ (i.e. students) expectations of the service and the costs in comparison to the competitors. Understanding the value and creating customer value are a means to attain competitive advantage and constitute the basis of price setting. Drawing upon this belief, as an initial step towards value-based pricing method, the possible value factors are suggested for calculating educational programme prices across HEIs. Design/methodology/approach – This is a conceptual paper introducing the value-based pricing approach in setting HEI tuition fees. Extending prior discussion on the demand for quality education and current financial challenges faced by HEIs, it introduces the concept pricing based upon customer perceived value (student/industry). Value-based pricing is deemed appropriate in view of the value of short tan...
18 citations
TL;DR: In this paper, the authors investigated the value relevance of accounting information in the presence of ineffective internal control (IIC) and found that IIC can directly affect a firm's market value after controlling cost of capital, corporate governance, and other, value-relevant variables.
Abstract: This paper investigates the value relevance of accounting information in the presence of ineffective internal control (IIC). Based on Ohlson’s valuation model, this paper first documents that IIC can directly affect a firm’s market value after control cost of capital, corporate governance, and other, value-relevant variables. Second, this paper finds that the value relevance of earnings and book value in determining a firm’s market value are significantly reduced. Collectively, the results of this paper indicate that the effectiveness of internal controls can directly affect a firm’s market value and the value relevance of accounting information.
18 citations
TL;DR: In this article, the effect of adjusting valuation inputs to reflect market variations on value relevance of fair value measurements was studied by comparing banks that made transfers of assets and banks that did not.
18 citations
Related Topics (5)
Performance Metrics
| Year | Papers |
|---|---|
| 2021 | 3 |
| 2020 | 2 |
| 2019 | 2 |
| 2018 | 3 |
| 2017 | 14 |
| 2016 | 20 |