주가평가와 회계 손실의 정보효과

This study examines whether accounting losses are less informative than profits about the firm's future prospects(i.e. equity valuation) in the Korean capital markets, and investigates the cause of weak informativeness of losses. For the purpose, we use stock price reflection model and stock return reflection model. The following results were found in this study. First, accounting losses have little information in equity valuation, but profits have a significant correlation with the firm value. Second, investors consider losses are not perpetuate. Thereby, they do not reflect earnings on firm valuation when losses were reported, but they value the firm according to the book value of equity(BV). This results are consistent with "Liquidation Option Hypotheses". Third, BV is useful variable in firm valuation not only loss case but also profit case. This means BV has a independent information content, such as proxy of future earnings.