2,196
Views
8
CrossRef citations to date
0
Altmetric
Research Article

Who’s a major? A novel approach to peer group selection: Empirical evidence from oil and gas companies

ORCID Icon & ORCID Icon | (Reviewing Editor)
Article: 1264538 | Received 19 Aug 2016, Accepted 18 Nov 2016, Published online: 08 Dec 2016

References

  • Alford, A. W. (1992). The effect of the set of comparable firms on the accuracy of the price-earnings valuation method. Journal of Accounting Research, 30, 94–108.10.2307/2491093
  • Antill, N., & Arnott, R. (2002). Oil company crisis, managing structure, profitability and growth. Oxford: Oxford Institute of Energy Studies.
  • Arellano, M. (1987). Computing robust standard errors for within-groups estimators. Oxford Bulletin of Economics and Statistics, 49, 431–434.
  • Asquith, P., Mikhail, M. B., & Au, A. S. (2005). Information content of equity analyst reports. Journal of Financial Economics, 75, 245–282.10.1016/j.jfineco.2004.01.002
  • Baker, M., & Ruback, R. (1999). Estimating industry multiples (Working Paper). Cambridge, MA: Harvard University.
  • Beatty, R. P., Riffe, S. M., & Thompson, R. (1999). The method of comparables and tax court valuations of private firms: An empirical investigation. Accounting Horizons, 13, 177–199.10.2308/acch.1999.13.3.177
  • Bhojraj, S., & Lee, C. M. C. (2002). Who is my peer? A valuation-based approach to the selection of comparable firms. Journal of Accounting Research, 40, 407–439.10.1111/1475-679X.00054
  • Bhojraj, S., Lee, C. M. C., & Ng, D.T. (2003). International valuation using smart multiples (Working Paper). Cornell University, Ithaca.
  • Boatsman, J., & Baskin, E. (1981). Asset valuation with incomplete markets. The Accounting Review, 56, 38–53.
  • Boone, J. (2002). Revisiting the reportedly weak value relevance of oil and gas asset present values: The roles of measurement error, model misspecification, and time-period idiosyncrasy. The Accounting Review, 77, 73–106.10.2308/accr.2002.77.1.73
  • Breusch, T. S. (1978). Testing for autocorrelation in dynamic linear models. Australian Economic Papers, 17, 334–355.10.1111/j.1467-8454.1978.tb00635.x
  • Breusch, T. S., & Pagan, A. R. (1979). A simple test for heteroscedasticity and random coefficient variation. Econometrica, 47, 1287–1294.10.2307/1911963
  • Bryant, L. (2003). Relative value relevance of the success efforts and full cost accounting methods in the oil and gas industry. Review of Accounting Studies, 8, 5–28.10.1023/A:1022645521775
  • Cheng, C. S. A., & McNamara, R. (2000). The valuation accuracy of the price-earnings and price-book benchmark valuation methods. Review of Quantitative Finance and Accounting, 15, 349–370.10.1023/A:1012050524545
  • Chow, G. C. (1960). Tests of equality between sets of coefficients in two linear regressions. Econometrica, 28, 591–605.10.2307/1910133
  • Copeland, T., Koller, T., & Murrin, J. (2000). Valuation. New York, NY: Wiley.
  • De Franco, G., Hope, O.-K., & Larocque, S. (2015). Analysts’ choice of peer companies. Review of Accounting Studies, 20, 82–109.10.1007/s11142-014-9294-7
  • DeAngelo, L. (1990). Equity valuation and corporate control. The Accounting Review, 65, 93–112.
  • Demirakos, E. G., Strong, N. C., & Walker, M. (2004). What valuation models do analysts use? Accounting Horizons, 18, 221–240.10.2308/acch.2004.18.4.221
  • Feltham, G. A., & Ohlson, J. A. (1995). Valuation and clean surplus accounting for operating and financial activities. Contemporary Accounting Research, 11, 689–731.10.1111/care.1995.11.issue-2
  • Financial Accounting Standards Board. (1982). Statement of financial accounting standards No. 69: Disclosures about oil and gas producing activities. Stamford, CT: Author.
  • Financial Accounting Standards Board. (2009). Financial accounting codification topic 932: Extractive activities—oil and gas. Stamford, CT: Author.
  • Financial Accounting Standards Board. (2010). Financial accounting series. accounting standards update. Extractive activities—oil and gas (Topic 932): Oil and gas reserves estimation and disclosures. An Amendment of the FAB Accounting Standards Codification. Stamford, CT: Author.
  • Godfrey, L. G. (1978). Testing against general autoregressive and moving average error models when the regressors include lagged dependent variables. Econometrica, 46, 1293–1302.10.2307/1913829
  • Gujarati, D. (1970a). Use of dummy variables in testing for equality between sets of coefficients in two linear regressions: A note. American Statistician, 24, 50–52.
  • Gujarati, D. (1970b). Use of dummy variables in testing for equality between sets of coefficients in two linear regressions: A generalization. American Statistician, 24, 18–21.
  • Hausman, J. A. (1978). Specification Tests in Econometrics. Econometrica, 46, 1251–1271.10.2307/1913827
  • International Accounting Standards Board. (2004). International financial reporting standards 6: Exploration for and evaluation of mineral resources. London: Author.
  • Kaplan, S. N., & Ruback, R. S. (1995). The valuation of cash flow forecasts: An empirical analysis. The Journal of Finance, 50, 1059–1093.10.1111/j.1540-6261.1995.tb04050.x
  • Kim, M., & Ritter, J. R. (1999). Valuing IPOs. Journal of Financial Economics, 53, 409–437.10.1016/S0304-405X(99)00027-6
  • Kumar Bhaskaran, R. J., & Sukumaran, S. K. (2016). An empirical study on the valuation of oil companies. OPEC Energy Review, 40, 91–108.10.1111/opec.2016.40.issue-1
  • Lie, E., & Lie, H. J. (2002). Multiples used to estimate corporate value. Financial Analysts Journal, 58, 44–54.10.2469/faj.v58.n2.2522
  • Liu, J., Nissim, D., & Thomas, J. (2002). Equity valuation using multiples. Journal of Accounting Research, 40, 135–172.10.1111/1475-679X.00042
  • Liu, J., Nissim, D., & Thomas, J. (2005). International equity valuation using multiples (Working Paper). Columbia University, New York, NY.
  • Liu, J., Nissim, D., & Thomas, J. (2007). Is cash flow king in valuations? Financial Analysts Journal, 63, 56–68.10.2469/faj.v63.n2.4522
  • Minjina, D. I. (2008). Multiples and their use for equity valuation on European capital markets. Theoretical and Applied Economics, 11, 22–28.
  • Misund, B., Asche, F., & Osmundsen, P. (2008). Industry upheaval and valuation: Empirical evidence from the international oil and gas industry. The International Journal of Accounting, 43, 398–424.10.1016/j.intacc.2008.09.007
  • Misund, B., Osmundsen, P., & Sikveland, M. (2015). International oil company valuation: The effect of accounting method and vertical integration. Petroleum Accounting and Financial Management Journal, 34, 1–20.
  • Nel, W. S., Bruwer, B. W., & Le Roux, N. J. (2013). Equity–and entity-based multiples in emerging markets: Evidence from the JSE securities exchange. Journal of Applied Business Research (JABR), 29, 829–852.10.19030/jabr.v29i3
  • Nel, S., Bruwer, W., & le Roux, N. J. (2014a). An emerging market perspective on peer group selection based on valuation fundamentals. Applied Financial Economics, 24, 621–637.10.1080/09603107.2014.894629
  • Nel, W. S., Bruwer, B. W., & le Roux, N. J. (2014b). An emerging market perspective on key value drivers in the valuation of cross-border Transactions into South Africa. Economics, Management and Financial Markets, 4, 91–111.
  • Osmundsen, P., Asche, F., Misund, B., & Mohn, K. (2006). Valuation of international oil companies. The Energy Journal, 27, 49–64.
  • Osmundsen, P., Mohn, K., Misund, B., & Asche, F. (2007). Is oil supply choked by financial market pressures? Energy Policy, 35, 467–474.10.1016/j.enpol.2005.12.010
  • Palepu, K., Healy, P., & Bernard, V. (2000). Business analysis and valuation (2nd ed.). Cincinatti, OH: South-Western College Publishing.
  • Penman, S. H. (2001). Financial statement analysis and security valuation. Irwin, CA: McGraw-Hill.
  • Roosenboom, P. (2007). Discussion of “How do underwriters value initial public offerings? An empirical analysis of the French IPO market”. Contemporary Accounting Research, 24, 1217–1243.10.1506/car.24.4.7
  • Schreiner, A., & Spremann, K. (2007). Equity valuation using multiples (Working Paper). University of Saint Gallen, Frankfurt.10.1007/978-3-8350-9531-1
  • Securities and Exchange Commission. (2008). Modernization of oil and gas reporting requirements: The final rule. Washington, DC: Author.
  • Tasker, S. C. (1998). Industry preferred multiples in acquisition valuation (Working Paper). Cornell University, Ithaca, NY.
  • White, H. (1980). A heteroskedasticity-consistent covariance matrix estimator and a direct test for heteroskedasticity. Econometrica, 48, 817–838.10.2307/1912934
  • Wright, C. J., & Gallun, R. A. (2005). International petroleum accounting. Tulsa, OK: PennWell.
  • Yoo, Y. K. (2006). The valuation accuracy of equity valuation using a combination of multiples. Review of Accounting and Finance, 5, 108–123.
  • Zarowin, P. (1990). What determines earnings-price ratios: Revisited. Journal of Accounting, Auditing, and Finance, 5, 439–457.