Saputro, Julianto Agung and Hartono, Jogiyanto (2017) Improved accuracy of ratio multiple valuation. In: 17th Annual Conference of the Asian Academic Accounting Association (2016 FourA Conference), 20-22 November 2016, Kuching, Sarawak.

Preview

PDF Available under License Attribution 4.0 International (CC BY 4.0). Download (122kB) | Preview

Abstract

Multiple valuation is widely used by investors and practitioners but its accuracy is questionable. Multiple valuation inaccuracies are due to unreliability of information used in valuation, inaccuracies comparison group selection, and use of individual multiple values.This study investigated the accuracy of valuation to examine factors that can increase the accuracy of the valuation of multiple ratios, that are discretionary accruals, the comparison group, and the composite of multiple valuation. These results indicate that multiple value adjustment method with discretionary accruals provides better accuracy, the industry comparator group method combined with the size and growth of companies also provide better accuracy.Composite of individual multiple valuation gives the best accuracy.If all of these factors combined, the accuracy of valuation of multiple ratios will give the best results.

Item Type:	Conference or Workshop Item (Paper)
Additional Information:	Published in SHS Web of Conferences 34, 03002 (2017) Organized by: Institute for Strategic and Sustainable Accounting Development (ISSAD), Tunku Puteri Intan Safinaz School of Accountancy (TISSA), Universiti Utara Malaysia (UUM)
Subjects:	H Social Sciences > HF Commerce > HF5601 Accounting
Divisions:	Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
Depositing User:	Mrs. Norazmilah Yaakub
Date Deposited:	22 Feb 2017 08:51
Last Modified:	22 Feb 2017 08:51
URI:	https://repo.uum.edu.my/id/eprint/21000

Actions (login required)

View Item