How Different GAAPs Affect Performance of Valuation Models: Evidence from Asia-Based Companies

Advances in Accounting, Vol. 25, No. 2, pp. 284-294, December 2009

39 Pages Posted: 29 Apr 2008 Last revised: 15 May 2011

See all articles by Kun Wang

Kun Wang

Texas Southern University - Jesse H. Jones School of Business

Murphy Smith

Texas A&M University-Corpus Christi-Department of Accounting

Date Written: May 13, 2011

Abstract

Use of accounting information to assess a firm's value is a very important subject for financial analysts, investors, lenders, policy-makers, and other market participants. This study compares the relative performance of three valuation models based on a sample of all relevant American Depositary Shares (ADRs) from selected Asian countries and a matched sample of U.S. counterparts, using accounting variables reported under U.S. generally accepted accounting principles (GAAP), non-U.S. GAAP, and IFRS. Understanding how these different GAAPs affect valuation is increasingly important, especially after the U.S. SEC decided in 2007 to accept IFRS, in place of U.S. GAAP, for financial reports of non-U.S. companies.

Keywords: Valuation models, financial markets, international accounting, international financial reporting standards (IFRS)

JEL Classification: M4, N20

Suggested Citation

Wang, Kun and Smith, Murphy, How Different GAAPs Affect Performance of Valuation Models: Evidence from Asia-Based Companies (May 13, 2011). Advances in Accounting, Vol. 25, No. 2, pp. 284-294, December 2009. Available at SSRN: https://ssrn.com/abstract=960870

Kun Wang

Texas Southern University - Jesse H. Jones School of Business ( email )

3100 Cleburne
Houston, TX 77004
United States

Murphy Smith (Contact Author)

Texas A&M University-Corpus Christi-Department of Accounting ( email )

6300 Ocean Dr
Corpus Christi, TX 78412
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
1,075
rank
19,036
Abstract Views
2,823
PlumX Metrics
!

Under construction: SSRN citations will be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information