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The relationship between competitive advantage and the value relevance of accounting information
- Authors
- Ryu, S.-L.; Won, J.
- Issue Date
- 2018
- Publisher
- Inderscience Publishers
- Keywords
- Accounting information; Competitive advantage; Data envelopment analysis; DEA; Efficiency; Firm lifecycle; Value relevance
- Citation
- International Journal of Trade and Global Markets, v.11, no.1-2, pp.118 - 126
- Indexed
- SCOPUS
- Journal Title
- International Journal of Trade and Global Markets
- Volume
- 11
- Number
- 1-2
- Start Page
- 118
- End Page
- 126
- ISSN
- 1742-7541
- Abstract
- This study examines the relationship between competitive advantage and the value relevance of accounting information. The advantage that a firm has over its competitors can be defined as its relative efficiency in transforming the performance of key success factors into the firm’s profitability. We classify firm-year observations into lifecycle stages and measure the efficiency using data envelopment analysis (DEA) in each of the different lifecycle stages. Our results indicate that the efficiency has a positive relationship with the stock price of a firm and decreases (or increases) the value relevance of book value per share (BPS) (or earnings per share (EPS)). The current study captures a firm’s competitive advantage by a single efficiency score and reveals that the efficiency has a positive impact on firm value. Copyright © 2018 Inderscience Enterprises Ltd.
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Collections - College of Global Business > Division of Convergence Business > 1. Journal Articles
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