uu.seUppsala University Publications
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
The valuation relevance of non-financial information
Uppsala University, Humanistisk-samhällsvetenskapliga vetenskapsområdet, Faculty of Social Sciences, Department of Business Studies.
Uppsala University, Humanistisk-samhällsvetenskapliga vetenskapsområdet, Faculty of Social Sciences, Department of Business Studies.
2006 (English)In: Management Research News, Vol. 29, no 9, 580-597 p.Article in journal (Refereed) Published
Abstract [en]

Abstract:

Purpose – Research has called for increased relevance of business reporting. A step towards that goal is an increased disclosure of non-financial information. At the present time, non-financial information is mostly provided on a voluntary basis.

Design/methodology/approach – Valuation relevance of non-financial information is studied by examining the information content of 200 analyst reports written on a respective number of firms listed in the S&P 500 index, while simultaneously performing a disclosure study of non-financial information by the same 200 firms in their annual reports.

Findings – We found the valuation relevance of non-financial information to be related to the size of the target firm. Further, analysts’ use of non-financial information is related to the level of non-financial information in the 10-k report of the target firm. Finally, analysts tend to rely more heavily on forward-looking non-financial information than on historical non-financial information.

Practical implications – The findings in this paper have implications for policy makers, preparers of business reporting, and others having to make judgments on information usefulness.

Originality/value – This study looks at the valuation relevance of non-financial information, as opposed to earlier studies that have judged the usefulness of non-financial information by measuring its value relevance. Information is regarded to have valuation relevance if it is used by analysts in the valuation process. Hence, valuation relevance offers an alternative way of measuring information usefulness.

Place, publisher, year, edition, pages
2006. Vol. 29, no 9, 580-597 p.
Keyword [en]
Management information, financial information, information disclosure, accounting valuations
Identifiers
URN: urn:nbn:se:uu:diva-82712OAI: oai:DiVA.org:uu-82712DiVA: diva2:110618
Available from: 2006-09-29 Created: 2006-09-29 Last updated: 2011-01-11

Open Access in DiVA

No full text

Other links

http://www.emeraldinsight.com/Insight/viewContentItem.do?contentType=Article&contentId=1572831

Authority records BETA

Flöstrand, PerStröm, Niklas

Search in DiVA

By author/editor
Flöstrand, PerStröm, Niklas
By organisation
Department of Business Studies

Search outside of DiVA

GoogleGoogle Scholar

urn-nbn

Altmetric score

urn-nbn
Total: 571 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf