Research on the information value of accounting data has been mainly conducted from the perspective of individual companies and the capital market. However, in recent years, the area has been expanding to an aggregate perspective and the analysis of the relationship with the macro economy. Among...

Price Earnings- and Market Book-ratios presume a systematic link between financial statement data and company value. We analyze this relationship in a steady state model with overlapping capacity investments where company value is inferred from a constant growth residual income model. We...