Improved accuracy of ratio multiple valuation
Multiple valuation is widely used by investors and practitioners but its accuracy is questionable. Multiple valuation inaccuracies are due to unreliability of information used in valuation, inaccuracies comparison group selection, and use of individual multiple values.This study investigated the ac...
| Main Authors: | , |
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| Format: | Conference or Workshop Item |
| Language: | English |
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EDP Sciences
2017
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/21000/1/shsconf_four2017%201%206vi.pdf |
| _version_ | 1825804478830346240 |
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| author | Saputro, Julianto Agung Hartono, Jogiyanto |
| author_facet | Saputro, Julianto Agung Hartono, Jogiyanto |
| author_sort | Saputro, Julianto Agung |
| collection | UUM |
| description | Multiple valuation is widely used by investors and practitioners but its accuracy is questionable. Multiple valuation inaccuracies are due to
unreliability of information used in valuation, inaccuracies comparison group selection, and use of individual multiple values.This study investigated the accuracy of valuation to examine factors that can increase the accuracy of the
valuation of multiple ratios, that are discretionary accruals, the comparison
group, and the composite of multiple valuation. These results indicate that multiple value adjustment method with discretionary accruals provides better accuracy, the industry comparator group method combined with the size and growth of companies also provide better accuracy.Composite of individual multiple valuation gives the best accuracy.If all of these factors combined, the
accuracy of valuation of multiple ratios will give the best results. |
| first_indexed | 2024-07-04T06:16:11Z |
| format | Conference or Workshop Item |
| id | uum-21000 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:16:11Z |
| publishDate | 2017 |
| publisher | EDP Sciences |
| record_format | eprints |
| spelling | uum-210002017-02-22T08:51:34Z https://repo.uum.edu.my/id/eprint/21000/ Improved accuracy of ratio multiple valuation Saputro, Julianto Agung Hartono, Jogiyanto HF5601 Accounting Multiple valuation is widely used by investors and practitioners but its accuracy is questionable. Multiple valuation inaccuracies are due to unreliability of information used in valuation, inaccuracies comparison group selection, and use of individual multiple values.This study investigated the accuracy of valuation to examine factors that can increase the accuracy of the valuation of multiple ratios, that are discretionary accruals, the comparison group, and the composite of multiple valuation. These results indicate that multiple value adjustment method with discretionary accruals provides better accuracy, the industry comparator group method combined with the size and growth of companies also provide better accuracy.Composite of individual multiple valuation gives the best accuracy.If all of these factors combined, the accuracy of valuation of multiple ratios will give the best results. EDP Sciences 2017 Conference or Workshop Item PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/21000/1/shsconf_four2017%201%206vi.pdf Saputro, Julianto Agung and Hartono, Jogiyanto (2017) Improved accuracy of ratio multiple valuation. In: 17th Annual Conference of the Asian Academic Accounting Association (2016 FourA Conference), 20-22 November 2016, Kuching, Sarawak. http://doi.org/10.1051/shsconf/20173403002 doi:10.1051/shsconf/20173403002 doi:10.1051/shsconf/20173403002 |
| spellingShingle | HF5601 Accounting Saputro, Julianto Agung Hartono, Jogiyanto Improved accuracy of ratio multiple valuation |
| title | Improved accuracy of ratio multiple valuation |
| title_full | Improved accuracy of ratio multiple valuation |
| title_fullStr | Improved accuracy of ratio multiple valuation |
| title_full_unstemmed | Improved accuracy of ratio multiple valuation |
| title_short | Improved accuracy of ratio multiple valuation |
| title_sort | improved accuracy of ratio multiple valuation |
| topic | HF5601 Accounting |
| url | https://repo.uum.edu.my/id/eprint/21000/1/shsconf_four2017%201%206vi.pdf |
| work_keys_str_mv | AT saputrojuliantoagung improvedaccuracyofratiomultiplevaluation AT hartonojogiyanto improvedaccuracyofratiomultiplevaluation |