IDEAS home Printed from https://ideas.repec.org/p/osf/socarx/h9q8w_v1.html

From Business Accounting to Market Valuations

Author

Listed:
  • Lee, Woongki

    (Yonsei University)

Abstract

In this study, we examine how accounting variables represent the core elements of firm activity and how the relations among these variables connect business accounting to market valuation. Building on this account, we develop a unified framework that expresses market values in accounting terms. A key contribution of this framework is that it places market-based and book-based measures of return within a single coherent structure. This unification, in turn, provides a new theoretical basis for refining central principles in corporate finance and valuation.

Suggested Citation

  • Lee, Woongki, 2026. "From Business Accounting to Market Valuations," SocArXiv h9q8w_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:h9q8w_v1
    DOI: 10.31235/osf.io/h9q8w_v1
    as

    Download full text from publisher

    File URL: https://osf.io/download/6a6cae7a40e90fa9c9cf6ab6/
    Download Restriction: no
    File URL: https://libkey.io/10.31235/osf.io/h9q8w_v1?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Richard S Ruback, 2002. "Capital Cash Flows: A Simple Approach to Valuing Risky Cash Flows," Financial Management, Financial Management Association, vol. 31(2), Summer.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Magni, Carlo Alberto, 2009. "Splitting up value: A critical review of residual income theories," European Journal of Operational Research, Elsevier, vol. 198(1), pages 1-22, October.
    2. Pierru, Axel, 2009. ""The weighted average cost of capital is not quite right": A rejoinder," The Quarterly Review of Economics and Finance, Elsevier, vol. 49(4), pages 1481-1484, November.
    3. Ralf Diedrich & Stefan Dierkes & Hans-Christian Gröger, 2022. "A note on the cost of capital with fixed payout ratios," Review of Quantitative Finance and Accounting, Springer, vol. 59(4), pages 1559-1575, November.
    4. Denis Babusiaux & Axel Pierru, 2009. "Investment project valuation : A new equity perspective," Working Papers hal-02469464, HAL.
    5. Cooper, Ian A. & Nyborg, Kjell G., 2006. "The value of tax shields IS equal to the present value of tax shields," Journal of Financial Economics, Elsevier, vol. 81(1), pages 215-225, July.
    6. Jennergren, L. Peter, 2011. "Firm Valuation with Operating Leases," SSE/EFI Working Paper Series in Business Administration 2011:3, Stockholm School of Economics, revised 30 May 2011.
    7. Peter Reichling & Anastasiia Zbandut, 2017. "Costs of capital under credit risk," FEMM Working Papers 170003, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    8. Fernandez, Pablo, 2003. "Equivalence of ten different methods for valuing companies by cash flow discounting," IESE Research Papers D/524, IESE Business School.
    9. Jennergren, L. Peter, 1998. "A Tutorial on the Discounted Cash Flow Model for Valuation of Companies," SSE/EFI Working Paper Series in Business Administration 1, Stockholm School of Economics, revised 13 Dec 2011.
    10. H. Qi & Y. A. Xie, 2016. "Cost of capital: spot rate or forward rate?," Applied Economics, Taylor & Francis Journals, vol. 48(40), pages 3804-3811, August.
    11. Rafael A. Rodríguez, 2024. "A novel approach to calculate weighted average cost of capital (WACC) considering debt and firm's cash flow durations," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 45(2), pages 1154-1179, March.
    12. Zurita, Salvador & Castillo, Augusto & Niño, Jorge, 2019. "Inflation, tax integration and company valuation: The Latin American case," Journal of Business Research, Elsevier, vol. 105(C), pages 370-380.
    13. Stewart C. Myers & James A. Read, Jr., 2012. "Real Options, Taxes and Financial Leverage," NBER Working Papers 18148, National Bureau of Economic Research, Inc.
    14. Fernandez, Pablo, 2005. "Financial literature about discounted cash flow valuation," IESE Research Papers D/606, IESE Business School.
    15. Lucia MICHALKOVA & Tomas KLIESTIK, 2019. "The Role Of Risk In The Valuation Of Tax Shield," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 13(1), pages 218-233, November.
    16. Matthias C. Grüninger & Axel H. Kind, 2013. "WACC Calculations in Practice: Incorrect Results due to Inconsistent Assumptions - Status Quo and Improvements," Accounting and Finance Research, Sciedu Press, vol. 2(2), pages 1-36, May.
    17. Fernández , Pablo, 2002. "The value of tax shields is not equal to the present value of tax shields," IESE Research Papers D/459, IESE Business School.
    18. Magni, Carlo Alberto, 2010. "Residual income and value creation: An investigation into the lost-capital paradigm," European Journal of Operational Research, Elsevier, vol. 201(2), pages 505-519, March.
    19. Alexander Peter Groh & Oliver Gottschalg, 2008. "The Opportunity Cost of Capital of US Buyouts," NBER Working Papers 14148, National Bureau of Economic Research, Inc.
    20. Lidiia Karpenko & Mykola Izha & Iryna Chunytska & Andrii Maiev & Kateryna Hunko, 2021. "The growth of the country’s economic security level based on the investment infrastructure development projects," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 8(4), pages 713-729, June.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:osf:socarx:h9q8w_v1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: OSF (email available below). General contact details of provider: https://socarxiv.org .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.