Work

Value-relevance of nonfinancial information: The wireless communications industry

Year: 1996

Type: article

Abstract: 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.

Source: Journal of Accounting and Economics

DOI: 10.1016/s0165-4101(96)00430-2

Authors: Eli Amir, Baruch Lev

Institutions: Columbia University, University of California, Berkeley

Language: English

Topic: Financial Reporting and Valuation Research

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $4,170

OpenAlex ID: W1972282968

FWCI: 54.49

Cites: 24

Cited by: 1,304

Related to: 10