Size Scale Effects in Capital Market Research; Applications and Obstacles

Document Type : Review Paper

Author

Ph.D. student of Alzahra University and faculty of Bojnourd University

Abstract

Size in accounting research is interesting topic for researchers. Some results vary with changes in triables size (in accounting, triables are often companies) or some interpretations regardless of the size can not be properly justified. However, in doing any research into the effects of size is said scale effects and to analytical problems that arise due to different size of triables (in accounting research of capital market, companies) is said problems of scale. This paper reviews the literature on the effects of scale with emphasis on size as scale factor in the accounting research of capital market that such a review has not been conducted in the literature up to now. This study includes review of types of scale effects, evaluating treatment ways for scale and impact of scale on the R2 of model. The results of this study suggest that researchers should be cautious in identifying the effects of scale. Also econometric topics are essential in accounting research. 

Keywords

Main Subjects

References

منابع

پورحیدری، امید؛ سلیمانی امیری، غلامرضا؛ صفاجو، محسن. (1384). بررسی میزان ارتباط سود و ارزش دفتری با ارزش بازار سهام شرکت‌های پذیرفته شده در بورس اوراق بهادار تهران. بررسی‌های حسابداری و حسابرسی، شماره 42، صص 19-3
محمودی، علی؛ سجادی، حسین. (1388). بررسی تأثیر پایداری سود، رشد سود و اندازه شرکت بر رابطه بین سود و جریان نقدی عملیاتی با بازده سهام شرکت‌های پذیرفته شده در بورس اوراق بهادار تهران. پایان نامه کارشناسی ارشد، دانشگاه شهید چمران اهواز
مشایخی، بیتا؛ فرهادی، سوران. (1392). تأثیر اندازه شرکت بر رابطه بین کیفیت افشا و هزینه حقوق صاحبان سهام شرکت‌های پذیرفته شده در بورس تهران. فصلنامه علمی تحقیقی حسابداری مدیریت، سال ششم، شماره نوزدهم، صص 115-101
C. D. Knoops;Veenman and Alexander Zapantouls. (2012). Chanching value relevance: The European perspective. Erasmus university thesis repository
Changbao WU; Bixia XU. (2008). Deflator selection and Generalized linear modeling in market-based accounting research. Applied financial economics, Vol. 18, Issue. 21, PP. 1739-1753
Felix H. Lamp. (2011). Mitigating scale effects in finance and accounting research: A simple transformation approach. Thesis to obtain the degree of doctor from the Erasmus university Rotterdom
Igor Goncharov; David Veenman. (2014). Stale and scale effects in market-based accounting research: Evidence from the valuation of dividends. European Accounting Review, Vol. 23, No. 1, PP. 25-55
Kin Lo. (2004). The effects of scale differences on inferences in accounting research: coefficient estimates, tests of incremental association,and relative value relevance. http: //ssrn. com/abstract=555684
Leif Atle Beisland. (2009). A review of the value relevance literature. The Open Business Journal, Vol. 2, PP. 7-27
Lopes- Espinosa. (2005). The influence of deflators on valuation. http: //www. google. com
Mary E. Barth; Greg Clinch. (2001). Scale effects in capital markets-based accounting research. Unpublished working paper (Stanford University)
Mary E. Barth; Greg Clinch. (2009). Scale effects in capital markets-based accounting research. Journal of Business Finance and Accunting, vol. 36, No. 3/4, PP. 253-288
Mary E. Barth; William H. Beaver؛ Wayne R. Landsman. (2000). The relevance of value relevance research. http: //www. google. com
Peter D. Easton; Gregory A. Sommers. (2003). Scale and scale effects in market-based accounting research. Journal of Business Finance & Accounting,Vol. 30, Issue. 1-2, PP. 25-55
Samy Ben Naceur; Walid Nachi. (2006). Does the Tunisian accounting reform improve the value relrvance of financial information? http: //ssrn. com/abstract=8889222
Stephen Brown; Kin Lo؛ Thomas Lys. (1999). Use of R2 in accounting research: Measuring changes in value relevance over the last four decades. Journal of acconting and economics, Vol. 28, No. 2,PP. 83-115
Zhaoyang GU. (2005). Scale factor, R2, the choice of levels versus returns models. Journal of Acconting, Auditing and Finance,Vol. 20, NO. 1, PP. 71-91
Zhaoyang GU. (2007). Across-Sample incomparability of R2s and additional evidence on value relevance changes over time. Journal of Business Finance & Accounting, Vol. 34, Issue. 7-8,PP. 1073-1098

Files

History

  • Receive Date: 26 March 2015
  • Revise Date: 03 April 2016
  • Accept Date: 23 June 2015

Share

How to cite

Statistics