Valuation of Salmon Farmers
Forthcoming in Aquaculture Economics & Management
29 Pages Posted: 20 Oct 2017
Date Written: October 2017
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
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