A novel approach to peer group selection: empirical evidence from oil and gas companies a novel approach to peer group selection: empirical evidence from oil and gas companies profitability and accounting methods this has been the topic of studies by bhojraj and lee (2002 bhojraj, s, & lee, c m c (2002. This working paper is distributed for purposes of comment and discussion only it may not be reproduced without permission of the copyright holder copies of working. Working paper department of applied economics and management cornell university, ithaca, new york 14853-7801 usa explaining market multiples in the united states (eg, bhojraj and lee (2001)) can be adapted to the remainder of the paper is organized as follows in section 2, we briefly review the vast.
Demirakos et al (2004) argue that multiples method is more appropriate to value beverage industry because it differentiates by stable growth than electronics and pharmaceutical industries. Bhojraj, lee, and oler (2003) find evidence that the gics classifications are significantly better than other industry classifications, including sic codes, in explaining co-movements in stock returns, valuation multiples, forecasted growth rates and various financial ratios. Literature review of the multiple valuation method 11 21 prior literature 11 22 standardized multiples 17 and bhojraj and lee (2001), who focused on the importance of choosing the right set of comparable companies bhojraj and lee state that it is paper, the term market value should be defined properly as the market value of equity of. Bhojraj, lee, and oler(2003) show gics is the best performing industry classi cation scheme for peer identi cation speci cally, they show that gics outperforms sics codes, naics codes, andfama.
Bhojraj and c lee appendix b variable descriptions all accounting and forecasted variables are based on the most recent information available as of june 30th of each year consensus analyst forecast of long-term growth for the firm from ibes—median consensus analyst forecast in the industry. Bhojraj and lee (2002) show that comparables selected on the basis of variables that explain cross-sectional differences in observed pricing multiples outperform peers identified using more naïve selection methods. Following bhojraj, lee, and oler (2003), we use global industry classification standard (gics) industry codes and define industry-wide earnings as average earnings (scaled by assets) of all firms in the. Working paper series using the warranted multiple method proposed by bhojraj and lee (2002, journal of accounting research) and controlling for economic comparability, we demonstrate how enhanced accounting comparability leads to better peer-based valuation performance.
Abstract in a paper published in the jfe in 2013, we provided evidence that market participants perceive staggered boards to be on average value-reducing. Feedback that helped improve our paper we also appreciate the feedback from semi- stick to the fundamentals and discover your peers volume 73 number 3 cfapubsorg 87 of five comparable companies were selected the bhojraj and lee (2002) estimated a series of annual cross-sectional regressions of ev/sales (enterprise. International valuation using smart multiples sanjeev bhojraj charles m c lee david t ng current draft: or david ng ([email protected]) bhojraj and lee are on the faculty of the johnson graduate school of management, sage hall, cornell university, ithaca, ny 14853 our paper is focused primarily. A comparison of residual income and comparable firm valuation of initial public offerings (see for example bhojraj and lee 2002) this study compares the more theoretically sound residual income the remainder of this paper is presented as follows section 2 relates the current study to prior literature section 3 outlines the valuation.
Comparability, and that earnings comparability is positively associated with forecast accuracy in the second part of the paper, we study the consequences of earnings comparability on the firm’s information environment given a particular firm, we hypothesize that the availability an “art form” (see bhojraj and lee, 2002) and the. The south african capital market ws nel, university of stellenbosch, south africa bw bruwer, university of stellenbosch, south africa this paper investigates the valuation performance of multiples over various industry classifications when 2006b asquith, mikhail & au, 2005 bhojraj & lee, 2002) multiples are used to value assets. Test-driving industry classifications this paper examines these assumptions shows that industry groupings analysis by bhojraj, lee and oler shows that market-based schemes, such as the global industry classification standard (gics),1 offer several advantages. Across private and public equity mar－ paper ，2003． tipper，brian wright．the teaching of transfer and internet shakeout in 2000 2001 8bhojraj sc m c.
Abstract over the last thirty years there has been a strong positive trend in the magnitude of amortization charges, due to both economic and accounting changes. Text-based network industries and endogenous product differentiation gerard hoberg university of southern california our paper is based on the premise that product similarity is core and bhojraj, lee, and oler (2003) also compare var.
Værdiansættelse med p/e-multiplen valuation using the p/e-multiple kandidatopgave the purpose of this paper is to examine how the valuation estimate of the price- 3 bhojraj & lee (2001) 4 deangelo (1990) kapitel 1- introduktion 2 figur 1. Compare sic codes to naics codes, and bhojraj, lee, and oler (2003) also compare var-ious ﬁxed industry classiﬁcations although these studies are informative and suggest that in tests of external validity that we conduct in this paper our new classiﬁcations can also be used in conjunction with, not in lieu of, other data although. Results in this paper show that the january premium exists both within and across gics industry sectors, but the value premium is not subsumed by the january effect in either analysis the strength of the value premium within sectors survives even after removing january returns, consistent with findings in daniel and titman ( 1997 daniel, k.