Valuation of Salmon Farmers

Forthcoming in Aquaculture Economics & Management

29 Pages Posted: 20 Oct 2017

Date Written: October 2017

Abstract

Financial statement information is important for evaluating a firm’s performance, and for forecasting its future cash flows. This paper studies the relationship between financial accounting information and market valuation for publically listed salmon farming companies. Of special interest is the impact on market valuation, of a requirement for salmon farmers to disclose the effect on their financial numbers of the fair-value adjustment of biomass. The results suggest that the fair-value adjustment results in higher volatility of profits, and lower value relevance for investors.

Keywords: Atlantic salmon production, valuation, market capitalization, value-relevance, stock markets, share prices, profitability, financial performance, earnings, price-to-book, valuation multiples, cost of capital

Suggested Citation

Misund, Bard, Valuation of Salmon Farmers (October 2017). Forthcoming in Aquaculture Economics & Management , Available at SSRN: https://ssrn.com/abstract=3056148

Bard Misund (Contact Author)

University of Stavanger ( email )

PO Box 8300 Forus
Stavanger
Norway

HOME PAGE: http://https://www.uis.no/nb/profile/bard-misund

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