A Study of Sale and Income in Firm Valuation
Subject Areas : Management Accountingهاشم نیکومرام 1 , علیرضا زارعی سودانی 2
1 - مسئول مکاتبات
2 - ندارد
Keywords: Sale, Income, information content persistenc, price change,
Abstract :
This research studies the information content and the incremental informationcontent of sale(revenue) vs. income in Cement Industry by panel Regressions. Resultsexplain: 1- The contemporaneous information content of sale and income are similarand overlapping in short-term, 2- The contemporaneous incremental informationcontent of sale than income for short-term is not notable, and 3- Over time, thepersistence of power of current period sale to explain the future stock price variationsis notably more than income; In other words, the incremental information content ofsale variations for long-term is significant. Finally, paper proposes some applicationsfor public companies' financial reporting, and performance evaluation in price changebased on sale.