Value relevance of customer equity beyond financial statements: evidence from mobile telecom industry                         *

Yong Bum Choi; Janghyuk Lee; Shijin Yoo; Yong Keun Yoo

doi:10.1080/16081625.2017.1386575

Value relevance of customer equity beyond financial statements: evidence from mobile telecom industry ^*

Yong Bum Choi
, Janghyuk Lee^*
, Shijin Yoo
, Yong Keun Yoo

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

6 Citations (Scopus)

Abstract

We investigate the extent of usefulness of customer equity (CE) estimate in explaining market value of equity (MVE) and the determinants of the discrepancy between CE estimate and MVE. Using the data of 17 companies in the mobile telecom companies in 7 countries from 2004 to 2008, we find (1) CE estimate provides incremental value relevant information to explain contemporaneous MVE beyond financial statements, and (2) CE estimate can predict future stock returns by indicating a part of temporal divergence between MVE and a firm’s intrinsic value of equity.

Original language	English
Pages (from-to)	281-300
Number of pages	20
Journal	Asia-Pacific Journal of Accounting and Economics
Volume	26
Issue number	3
DOIs	https://doi.org/10.1080/16081625.2017.1386575
Publication status	Published - 2019 May 4

Bibliographical note

Publisher Copyright:
© 2017, © 2017 City University of Hong Kong and National Taiwan University.

Keywords

Customer equity
market value of equity
value relevance

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

Access to Document

10.1080/16081625.2017.1386575

Cite this

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AU - Yoo, Yong Keun

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