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The Relative Relationship Between Systematic Risk and Value Added Variables
Author(s) -
Karpik Philip,
Belkaoui Ahmed
Publication year - 1989
Publication title -
journal of international financial management and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.818
H-Index - 37
eISSN - 1467-646X
pISSN - 0954-1314
DOI - 10.1111/j.1467-646x.1989.tb00014.x
Subject(s) - explanatory power , earnings , context (archaeology) , econometrics , economics , value (mathematics) , accrual , cash flow , systematic risk , financial economics , statistics , accounting , mathematics , geography , philosophy , archaeology , epistemology
The objective of this study is to determine whether value added variables possess incremental information beyond both accrual earnings and cash flows in the context of explaining market risk. The evidence points to the superior explanatory power of value added variables in explaining the variability in market betas. A case can be made for the disclosure of value added reports.