Development of the Ohlson and Feltham-Ohlson Valuation models using the Dickinson’s life cycle classification
Subject Areas : Management AccountingM. Reza Emami Naeini 1 , Forogh Rahimi Mougouei 2
1 - فارغ التحصیل دکتری حسابداری دانشگاه شهید چمران اهواز
2 - فارغ التحصیل دکتری حسابداری دانشگاه تربیت مدرس
Keywords: Abnormal earnings, Firm Valuation, Firm Life Cycle,
Abstract :
Ohlson (1995) and Feltham-Ohlson (1995) valuation modelsare accounting based models that affect from accounting income, discount rate and conservatism. The Life Cycle Theory says that company show different characteristics in some important aspects during different stages of its life and has specific politics in each stage of its economic life. These policies are reflected in the company's accounting information. So investors and analysts consider different importance to these variables at different stages of the life cycle. The aim of this study is to achieve adjusted versions of the ohlson and Feltham-Ohlson prediction and valuation models using the Dickinson’s life cycle classification (2011). For comparative assessment of the initial and adjusted models the panel data of the 143 firms listed on Tehran Stock Exchange between 2009 and 2014 is used. The results show that the adjusted models have better performance in both predicting abnormal earnings and firm’s valuation compared to the initial models.
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