The international journal of accounting and business society, 2004
The dividend Yield and Price Earnings Ratio are two widely used measures of share valuation. This... more The dividend Yield and Price Earnings Ratio are two widely used measures of share valuation. This paper presents the value relevance controversy of these two measures. It reveals that both D/Y and P/E provide useful information to rational investors but D/Y can vary independently of the value of the company and P/E ratio is also uninformative. Keywords: Earnings, lnfomation, Dividend, Valuation, Growth, Uncertainty.
Please refer to published version for the most recent bibliographic citation information. If a pu... more Please refer to published version for the most recent bibliographic citation information. If a published version is known of, the repository item page linked to above, will contain details on accessing it.
Corporate Social Reporting (CSR) assumes that the companies are socially conscious to discharge t... more Corporate Social Reporting (CSR) assumes that the companies are socially conscious to discharge their social obligations for the well being of the society. Now business enterprises are under pressure from stakeholders to report to them, as to what extent they have been successful in protecting their interests. Thus, it is essential for them to adopt social accounting practices and report to interested parties as to what extent they have discharged the social responsibilities delegated to them. This study reveals that most of the listed companies in Bangladesh did not provide any information regarding the environment, human resources, community, and consumers in 1996‐97. Though some progressive companies disclosed some information, that information was not at all adequate in discharging social responsibilities. All the information provided by these companies was qualitative in nature and the disclosure level was very poor.
This document is made available in accordance with publisher policies. Please cite only the publi... more This document is made available in accordance with publisher policies. Please cite only the published version using the reference above. Full terms of use are available:
The abandonment of a separate stewardship role in the IASB’s 2010 Conceptual Framework led to sig... more The abandonment of a separate stewardship role in the IASB’s 2010 Conceptual Framework led to significant disquiet in the accounting community, yet empirical evidence on whether stewardship decisions require information with different properties to valuation decisions remains scarce. We conduct a large international face-to-face interview survey of 81 professional investors to investigate whether they assess accounting information differently under stewardship and valuation objectives and whether accounting data is implicated in managerial compensation. We find that professional investors whose objective is to value the firm consistently assess financial accounting information to be more relevant than those assessing the performance of management. In contrast, we find that the existence of accounting-based compensation arrangements has no clear effect on assessments of representational faithfulness of financial reporting information. Subsequent analyses show that the latter result s...
Please refer to published version for the most recent bibliographic citation information. If a pu... more Please refer to published version for the most recent bibliographic citation information. If a published version is known of, the repository item page linked to above, will contain details on accessing it.
This paper explores the ways in which sell-side financial analysts seek to position themselves ad... more This paper explores the ways in which sell-side financial analysts seek to position themselves advantageously within the wider field of investment advice in spite of widespread skepticism over the value that their forecasts and recommendations add to investment decisions. The field of investment advice has been characterized in recent years by a number of regulatory and technological changes that have forced sell-side analysts to reconstitute the ways in which they influence the investment decisions of buy-side actors. Faced with existential threats, sell-side analysts have responded to the disruptive impact of technology and regulation by struggling hard to ensure that their services are still valued by fund managers. Key to this ongoing process is the recalibration of professional expertise, which previous research has alluded to but not explored in detail. Central to the persistence of sell-side analysts in processes of investment decision-making are activities revolving around the production and use of analyst reports which, our findings indicate, are less valuable for their informational content than their role as 'relational devices', ascribing legitimacy to sell-side analysts and earning them an entry ticket to more substantive, value-adding interactions with companies and buy-side actors. We also show that economic considerations in the area of investment advice are influenced by social ties, the motivations of various actors in the field and their relative position vis-à-vis other actors. More generally, we contribute to literature on professional projects by showing how professional groups are constantly engaged in attempts to reposition themselves in the social space, but that field-level changes can restrict 1 This article is protected by copyright. All rights reserved. This is the author manuscript accepted for publication and has undergone full peer review but has not been through the copyediting, typesetting, pagination and proofreading process, which may lead to differences between this version and the Version of Record. Please cite this article as
Accounting, Auditing & Accountability Journal, 2016
Purpose – The purpose of this paper is to shed light on the nature of the work that financial ana... more Purpose – The purpose of this paper is to shed light on the nature of the work that financial analysts actually do in the context of the market for information and to further open up research in this area to qualitative and sociological inquiry. Design/methodology/approach – A field study with 49 financial analysts (both buy-side and sell-side) was undertaken in order to understand the work that they actually do. This field study was theoretically informed by the sociology of Pierre Bourdieu. Findings – The authors find, in contrast to both conventional wisdom and assumptions in prior (mostly quantitative) literature, that the primary value of sell-side analyst work lies not in the recommendations that analysts ultimately produce, but in the rich contextual information that they provide to buy-side analysts. In order to successfully provide this information, analysts have to embody large amounts of technical capital into their habitus. Research limitations/implications – Much resear...
This report reviews the literature on the use of information by capital providers, who are primar... more This report reviews the literature on the use of information by capital providers, who are primary recipients of accounting information.
This paper draws on the report 'The Use of Information by Capital Providers', prepared for ICAS (... more This paper draws on the report 'The Use of Information by Capital Providers', prepared for ICAS (The Institute of Chartered Accountants of Scotland) and EFRAG (European Financial Reporting Advisory Group), by the same authors. We gratefully acknowledge the financial support and guidance of ICAS and EFRAG. Beatriz García acknowledges financial support by the AECA Chair in Accounting and Auditing and the UAM-Auditores Madrid Chair. We are also grateful for the helpful comments of the editor and an anonymous reviewer.
Earnings and dividends can both provide useful information in equity valuation. Keywords: earning... more Earnings and dividends can both provide useful information in equity valuation. Keywords: earnings; dividend information; survey evidence
Main findings Who are the key capital providers to companies in the European Union? Equity invest... more Main findings Who are the key capital providers to companies in the European Union? Equity investors, debt providers and trade creditors are the primary capital providers in the European Union. Public companies rely on debt at least as much as equity, though there is signi cant international variation within the EU. Because they are not a homogeneous group, capital providers can be further sub-classi ed. For example, 'inside' equity investors (such as owner-managers in family rms) with the ability to access price-sensitive information from within the rm can be expected to have different information needs to 'outside' equity investors, who have no such access and therefore rely on information that is generally publicly available. This review therefore examines the use of information by outside professional equity investors, private/retail equity investors, inside equity investors, public and private debt investors and trade creditors.
... need for their research to be credible to buy-side clients, cause the use of subjective, unso... more ... need for their research to be credible to buy-side clients, cause the use of subjective, unsophisticated methods of valuation to be played down. Given the inherent flexibility of the DCF model, coupled with its ostensible credibility, it becomes the natural vehicle for conveying the ...
The international journal of accounting and business society, 2004
The dividend Yield and Price Earnings Ratio are two widely used measures of share valuation. This... more The dividend Yield and Price Earnings Ratio are two widely used measures of share valuation. This paper presents the value relevance controversy of these two measures. It reveals that both D/Y and P/E provide useful information to rational investors but D/Y can vary independently of the value of the company and P/E ratio is also uninformative. Keywords: Earnings, lnfomation, Dividend, Valuation, Growth, Uncertainty.
Please refer to published version for the most recent bibliographic citation information. If a pu... more Please refer to published version for the most recent bibliographic citation information. If a published version is known of, the repository item page linked to above, will contain details on accessing it.
Corporate Social Reporting (CSR) assumes that the companies are socially conscious to discharge t... more Corporate Social Reporting (CSR) assumes that the companies are socially conscious to discharge their social obligations for the well being of the society. Now business enterprises are under pressure from stakeholders to report to them, as to what extent they have been successful in protecting their interests. Thus, it is essential for them to adopt social accounting practices and report to interested parties as to what extent they have discharged the social responsibilities delegated to them. This study reveals that most of the listed companies in Bangladesh did not provide any information regarding the environment, human resources, community, and consumers in 1996‐97. Though some progressive companies disclosed some information, that information was not at all adequate in discharging social responsibilities. All the information provided by these companies was qualitative in nature and the disclosure level was very poor.
This document is made available in accordance with publisher policies. Please cite only the publi... more This document is made available in accordance with publisher policies. Please cite only the published version using the reference above. Full terms of use are available:
The abandonment of a separate stewardship role in the IASB’s 2010 Conceptual Framework led to sig... more The abandonment of a separate stewardship role in the IASB’s 2010 Conceptual Framework led to significant disquiet in the accounting community, yet empirical evidence on whether stewardship decisions require information with different properties to valuation decisions remains scarce. We conduct a large international face-to-face interview survey of 81 professional investors to investigate whether they assess accounting information differently under stewardship and valuation objectives and whether accounting data is implicated in managerial compensation. We find that professional investors whose objective is to value the firm consistently assess financial accounting information to be more relevant than those assessing the performance of management. In contrast, we find that the existence of accounting-based compensation arrangements has no clear effect on assessments of representational faithfulness of financial reporting information. Subsequent analyses show that the latter result s...
Please refer to published version for the most recent bibliographic citation information. If a pu... more Please refer to published version for the most recent bibliographic citation information. If a published version is known of, the repository item page linked to above, will contain details on accessing it.
This paper explores the ways in which sell-side financial analysts seek to position themselves ad... more This paper explores the ways in which sell-side financial analysts seek to position themselves advantageously within the wider field of investment advice in spite of widespread skepticism over the value that their forecasts and recommendations add to investment decisions. The field of investment advice has been characterized in recent years by a number of regulatory and technological changes that have forced sell-side analysts to reconstitute the ways in which they influence the investment decisions of buy-side actors. Faced with existential threats, sell-side analysts have responded to the disruptive impact of technology and regulation by struggling hard to ensure that their services are still valued by fund managers. Key to this ongoing process is the recalibration of professional expertise, which previous research has alluded to but not explored in detail. Central to the persistence of sell-side analysts in processes of investment decision-making are activities revolving around the production and use of analyst reports which, our findings indicate, are less valuable for their informational content than their role as 'relational devices', ascribing legitimacy to sell-side analysts and earning them an entry ticket to more substantive, value-adding interactions with companies and buy-side actors. We also show that economic considerations in the area of investment advice are influenced by social ties, the motivations of various actors in the field and their relative position vis-à-vis other actors. More generally, we contribute to literature on professional projects by showing how professional groups are constantly engaged in attempts to reposition themselves in the social space, but that field-level changes can restrict 1 This article is protected by copyright. All rights reserved. This is the author manuscript accepted for publication and has undergone full peer review but has not been through the copyediting, typesetting, pagination and proofreading process, which may lead to differences between this version and the Version of Record. Please cite this article as
Accounting, Auditing & Accountability Journal, 2016
Purpose – The purpose of this paper is to shed light on the nature of the work that financial ana... more Purpose – The purpose of this paper is to shed light on the nature of the work that financial analysts actually do in the context of the market for information and to further open up research in this area to qualitative and sociological inquiry. Design/methodology/approach – A field study with 49 financial analysts (both buy-side and sell-side) was undertaken in order to understand the work that they actually do. This field study was theoretically informed by the sociology of Pierre Bourdieu. Findings – The authors find, in contrast to both conventional wisdom and assumptions in prior (mostly quantitative) literature, that the primary value of sell-side analyst work lies not in the recommendations that analysts ultimately produce, but in the rich contextual information that they provide to buy-side analysts. In order to successfully provide this information, analysts have to embody large amounts of technical capital into their habitus. Research limitations/implications – Much resear...
This report reviews the literature on the use of information by capital providers, who are primar... more This report reviews the literature on the use of information by capital providers, who are primary recipients of accounting information.
This paper draws on the report 'The Use of Information by Capital Providers', prepared for ICAS (... more This paper draws on the report 'The Use of Information by Capital Providers', prepared for ICAS (The Institute of Chartered Accountants of Scotland) and EFRAG (European Financial Reporting Advisory Group), by the same authors. We gratefully acknowledge the financial support and guidance of ICAS and EFRAG. Beatriz García acknowledges financial support by the AECA Chair in Accounting and Auditing and the UAM-Auditores Madrid Chair. We are also grateful for the helpful comments of the editor and an anonymous reviewer.
Earnings and dividends can both provide useful information in equity valuation. Keywords: earning... more Earnings and dividends can both provide useful information in equity valuation. Keywords: earnings; dividend information; survey evidence
Main findings Who are the key capital providers to companies in the European Union? Equity invest... more Main findings Who are the key capital providers to companies in the European Union? Equity investors, debt providers and trade creditors are the primary capital providers in the European Union. Public companies rely on debt at least as much as equity, though there is signi cant international variation within the EU. Because they are not a homogeneous group, capital providers can be further sub-classi ed. For example, 'inside' equity investors (such as owner-managers in family rms) with the ability to access price-sensitive information from within the rm can be expected to have different information needs to 'outside' equity investors, who have no such access and therefore rely on information that is generally publicly available. This review therefore examines the use of information by outside professional equity investors, private/retail equity investors, inside equity investors, public and private debt investors and trade creditors.
... need for their research to be credible to buy-side clients, cause the use of subjective, unso... more ... need for their research to be credible to buy-side clients, cause the use of subjective, unsophisticated methods of valuation to be played down. Given the inherent flexibility of the DCF model, coupled with its ostensible credibility, it becomes the natural vehicle for conveying the ...
Uploads
Papers by Shahed Imam