Value Relevance of Reported Earnings under Conservative Accounting Versus under Mark to Market Accounting

Value Relevance of Reported Earnings under Conservative Accounting Versus under Mark to Market Accounting

Guo Ying Luo

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McMaster University

Value Relevance of Reported Earnings under Conservative Accounting Versus under Mark to Market Accounting

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Abstract

This paper compares the value relevance of earnings under two different accounting methods (namely, conservative accounting and mark to market accounting) in a competitive security market. It proves that the reported earnings are value relevant under both types of accounting methods. Furthermore, if the proportion of earnings fixated traders lies in the upper range of the interval [0,1], the reported earnings under conservative accounting are more value relevant than the ones under mark to market. Otherwise, the reported earnings under mark to market are more value relevant than the ones under conservative accounting.

References

18 Cites in Article

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Guo Ying Luo. 2013. \u201cValue Relevance of Reported Earnings under Conservative Accounting Versus under Mark to Market Accounting\u201d. Global Journal of Management and Business Research - D: Accounting & Auditing GJMBR-D Volume 13 (GJMBR Volume 13 Issue D4).

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GJMBR Volume 13 Issue D4

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

Keywords

accounting methods conservative accounting market accounting security market

Submission ReceivedDecember 8, 2012
Peer Review Double Blind
Handling Editor
Accepted December 31, 2012
Published January 15, 2013

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v1.2

Issue date

August 6, 2013

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Article Matrices

Total Score: 131

Country: Canada

Subject: Global Journal of Management and Business Research - D: Accounting & Auditing

Authors: Guo Ying Luo (PhD/Dr. count: 0)

View Count (all-time): 144

Total Views (Real + Logic): 4754

Total Downloads (simulated): 2608

Publish Date: 2013 08, Tue

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Total Views: 4754

Total Downloads: 2608

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