Ohlson’s (1995) Model: Have we Fully Understood it?
Manuel Larrán Jorge
Juan Manuel Piñero López
This paper makes a theoretical revision of the Ohlson (1995) model, one of the works that has had greatest impact on accounting literature in recent years. The work carried out has centred on three different aspects: the theoretical framework of the model, both the functional form of the valuation model and the empirical validity of the dynamic equations assumed by the author and, finally, the econometric specification of the model. With this analysis we want to highlight the fact that some, more or less common, practices among researchers can have important repercussions on the results they obtain. Basically, these practices are related to dirty surplus components, dividends and the “other information” variable.
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