The Value Relevance of Earning Measurement Using Ohlson Model: A Meta-Analysis

Abstract

The purpose of this study is to integrate the value relevance of several earning measurement from prior studies using the Ohlson model. Previous findings consistently show that the earnings on extraordinary items has a positively significant relationships with the equity market value weather, with or without the use of a scale while mixed results has been reported for abnormal earning, earning per share and net income in different country between 1996-2016. Findings also revealed that the value in the relevance level (R 2 ) varies and have different relationships in the equity market value for the same earning measurement. Researchers used a meta-analysis from the 257 published studies to summaries the findings with a standard statistics in the form of effect sizes. The analysis also allows researchers test the positive relevance without using a regression analysis, to determine the single level of R 2 using the shared variance proportion (r 2 ) value. The findings specifically confirms that the EPS, abnormal earning per share, earning before extraordinary item per share and the net income have positive relevance. Compared to the quarterly and six month price after the end of the year, the value of the EPS relevance level has a higher if associated with share price at the end of the year. This also happens in an abnormal earning per share with an equity cost capital 8%. The EBEI has a higher r 2 compared to the quarterly share price and the net income with equity market value. The research findings also revealed that the positive relevance of the net income is influenced by a moderating variable.

Prediksi Nilai Perusahaan melalui Penilaian Struktur Modal sebagai Pemoderasi

“…Hasil pengukuran rasio penilaian tersebut bermanfaat bagi investor untuk mengetahui saham perusahaan yang bertumbuh dan berkinerja baik. Nilai perusahaan juga mencerminkan nilai jual perusahaan yang dianggap layak sehingga bersedia dibayarkan oleh calon pembeli ketika perusahaan akan dijual [1], [2], [3], [4], [5].…”