Fundamentals of Accounting Losses

Costly arbitrage and the convergence of price to accounting fundamentals

This paper examines the impact of arbitrage costs on the level and duration of the disparity between price and accounting information about firm value. Arbitrage costs are expected to increase the disparity between price and value. However, by increasing the potential rewards to the arbitrageur, arbitrage costs may not necessarily impede the longer-term convergence of price to value. I use the ...

The usefulness of accounting fundamentals and other prospectus information in the valuation of IPO firms

† We acknowledge the useful comments from Nerissa Brown, Woo-Jin Chan, Jeff Coulton, Neil Fargher, Sarah McVay, Gil Sadka, Andreas Simon and participants at the AFAANZ Annual Conference in 2005. This work was started by Andrew Lynch as part of his honour’s thesis at the University of Melbourne, and completed while Asher Curtis and Julian Yeo were PhD students at the University of New South Wale...

The Relevance of Using Accounting Fundamentals in the Mexican Stock Market

This paper examines the value relevance of accounting fundamentals in the Mexican Stock Market ([BMV] – Bolsa Mexicana de Valores). The research question that motivated the paper was: Can accounting fundamentals provide relevant information to better understand firm value? More specifically, the paper examines whether the application of an accounting fundamental strategy to select stocks of a p...

Propagation of Current Waves along Quasi-Periodical Thin-Wire Structures: Accounting of Radiation Losses

The homogeneous problem of current propagation along a thin wire of arbitrary geometric form near ground is reduced use of the Full-Wave Transmission Line Theory [8-10] to a Schrödinger-like differential equation, with a “potential” depending on both the geometry of the wire and frequency. The “potential” is a complex – valued quantity that corresponds to either radiation losses in the framewor...

Fundamentals of Supply Chain Management Fundamentals of Supply Chain Management Fundamentals of Supply Chain Management