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CONSULTANCY
AEL
A Convivium 2014
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ael-2013-0026
Giuseppe Marzo* ... Commentary on the book “Accounting for Value” by Stephen Penman
Abstract: “Accounting for Value” by Stephen Penman is thought-provoking in its
challenge to mainstream in both finance and accounting. This fosters a reflection
on models and tools employed for valuation. Some points about the book should
be underlined. Penman states that he adheres to finance theory principles, but he
moves away from them, as he offers a complete reinterpretation of such principles
from a fundamentalist perspective. He also puts a distance between the finance
theory approach and his own. Value is about business, he says, not about paper.
The finance approach is focused on paper (stocks, bonds) and neglects business.
Knowledge about business and prudence should be adopted by analysts in order
to challenge market prices and find profit opportunities. Accrual accounting
should be used instead of the discounted cash-flow approach, he says, and
therefore “accounting for value” is not only about value but about accounting
too. However, Penman argues, good accounting is not the one currently proposed
by accounting standards.
'http://truevaluemetrics.org/DBpdfs/Ideas/AEL/ael-2013-0026.pdf'
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Open PDF ... ael-2013-0026
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ael-2013-0043
Huifeng Liu* ... The Value of Accounting for Value
Abstract: This is a book review for Accounting for Value. The book draws upon “Ten Commandments” instead of boring accounting jargon. Its unique value is based on renewed valuation formula to interpret the usefulness of fundamental accounting information that is consistent with historical cost accounting.
'http://truevaluemetrics.org/DBpdfs/Ideas/AEL/ael-2013-0043.pdf'
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Open PDF ... ael-2013-0043
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ael-2013-0061
Yulia Chernin and Yaron Lahav* ... “The People Demand Social Justice” A Case Study on the Impact of Protests on Financial Markets
Abstract: In Israel, the summer of 2011 will be remembered as the summer of social protestation. Steadily increasing food prices that showed no sign of abating motivated people across the nation to voice their discontent in massive weekly protests attended by thousands. As the movement gathered momentum and the impacts of the protests increased, it caught the attention of policy makers, food manufacturers, and food channel retailers. In this article, we show how certain important events during this summer negatively affected the price of food retailers’ stocks. We also show that a proper response to the events by retailers targeted by the protestors prevented their stock from falling. We show that a proper response of one retailer converted the goal of protestors and increased its market value.
'http://truevaluemetrics.org/DBpdfs/Ideas/AEL/ael-2013-0061.pdf'
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Open PDF ... ael-2013-0061
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