Additional information
by Baruch Lev (Author), Feng Gu (Author)
An innovative new valuation framework with truly useful economic indicators
The End of Accounting and the Path Forward for Investors and Managers shows how the ubiquitous financial reports have become useless in capital market decisions and lays out an actionable alternative. Based on a comprehensive, large-sample empirical analysis, this book reports financial documents' continuous deterioration in relevance to investors' decisions. An enlightening discussion details the reasons why accounting is losing relevance in today's market, backed by numerous examples with real-world impact. Beyond simply identifying the problem, this report offers a solution--the Value Creation Report--and demonstrates its utility in key industries. New indicators focus on strategy and execution to identify and evaluate a company's true value-creating resources for a more up-to-date approach to critical investment decision-making.
While entire industries have come to rely on financial reports for vital information, these documents are flawed and insufficient when it comes to the way investors and lenders work in the current economic climate. This book demonstrates an alternative, giving you a new framework for more informed decision making.
- Discover a new, comprehensive system of economic indicators
- Focus on strategic, value-creating resources in company valuation
- Learn how traditional financial documents are quickly losing their utility
- Find a path forward with actionable, up-to-date information
Major corporate decisions, such as restructuring and M&A, are predicated on financial indicators of profitability and asset/liabilities values. These documents move mountains, so what happens if they're based on faulty indicators that fail to show the true value of the company? The End of Accounting and the Path Forward for Investors and Managers shows you the reality and offers a new blueprint for more accurate valuation.
Front Jacket
Despite the efforts of regulators around the world who strive to improve accounting and corporate transparency, the financial information they require to be disclosed no longer truly reflects the performance and value of business enterprises. The End of Accounting and the Path Forward for Investors and Managers empirically proves this statement and offers a new way of reporting that provides a truly transparent look at a business's vitality.
Today's financial reports provide a very small component of the relevant information investors and lenders need to wisely put their money with high-potential organizations. Inside, the authors share their radical findings from examining quarterly earnings conference calls and investor meetings in four major economic sectors, revealing that a company's worth lies in the strategic, value-enhancing resources it holds rather than the traditional assets in corporate financial reports. This groundbreaking process is more than a way to avoid investing in companies with misleading financial reports; it's also proven to uncover the companies poised to capture major market share, but currently burdened by red ink on their books. The conclusions inside fly in the face of conventional investment wisdom and practice, but they were reached by extensive examination of real-world facts and, as you will see, proven in numerous case studies. This thorough resource gives you what you need to gain meaningful insight into a company, including:
- A comprehensive system of economic indicators that evaluates the performance and long-term competitive position of business enterprises
- A detailed proposal for how current accounting and reporting systems can be restructured to efficiently serve twenty-first century companies, investors, and lenders
- Concrete steps to conduct your investment routine to align with the real drivers of business success
Make your investing and lending decisions based on information that matters with The End of Accounting and the Path Forward for Investors and Managers.
Author Biography
BARUCH LEV is the Philip Bardes Professor of Accounting and Finance at the NYU Stern School of Business. He has authored more than 100 research studies and five books, including Winning Investors Over.
FENG GU is an Associate Professor and Chair of the Department of Accounting and Law at the University at Buffalo. He has written numerous articles for top research journals.
