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Abstract:
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We present a theoretical and empirical analysis of the fitness of national German
(German Commercial Code – Handelsgesetzbuch (HGB)) and international (IAS and
US-GAAP) accounting information, as well as European patent data to explain the
market values of German manufacturing firms. For the chosen volatile period from
1997 to 2002, cautious national accounting information does not correlate with the
firms’ residual market values (RMV). International accounting information makes no
meaningful contribution to explaining firms’ RMV and seems to measure overinvestment
only. Finally, patents counted at the individual country level correlate with
the firms’ RMV.
Keywords: Accounting standards, investor information, market value,
patents
JEL-classifications: D82, M40, M41, K11 |
This work is licensed under a Creative Commons License.
