作者 Oler, Mitchell Jon
書名 The continuing existence of firms with a market-to-book ratio less than 1
國際標準書號 9780542980367
book jacket
說明 91 p
附註 Source: Dissertation Abstracts International, Volume: 67-11, Section: A, page: 4241
Adviser: Terrence J. Shevlin
Thesis (Ph.D.)--University of Washington, 2006
This paper examines firms with market-to-book ratio's less than one (MTB<1). If managers have the option to adapt assets (either internally or externally via selling the firm) to other uses when the expected net present value from current earnings is less than the book value, a MTB ratio less than one should not be observed. However, a sample from 1990 to 2004 indicates 5,042 continuous firm-month observations (representing 3,880 firms) where the MTB ratio is less than one for at least 12 consecutive months, and 1 observation that lasts for 238 consecutive months. I investigate three reasons why these firms continue to exist though the market value of the equity is less than the book value: non-conservative accounting, weak corporate governance, and information asymmetries between the managers and the market. This paper extends the research on the adaptation option and provides an explicit link between firm value and corporate governance
School code: 0250
DDC
Host Item Dissertation Abstracts International 67-11A
主題 Business Administration, Accounting
0272
Alt Author University of Washington