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Efficiency of Asset Valuation Rules Under Price Movement and Measurement Errors.

Suk S. Lim; Shyam Sunder

The Accounting Review 1991

Presents a linear aggregation model of valuation of assets to help understand how the minimum mean squared error valuation rule is affected by various parameters that characterize the economy and the circumstances under which historical-cost valuation rule yields a statistically more precise estimate of the unobserved economic value of firms' assets than the current valuation rule.

DOI
10.2308/tar-9605070400
Volume
66 (4)
Pages
669-693
Language
en
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