The Value-Relevance of Financial and Nonfinancial Information—Evidence from Taiwan’s Information Electronics Industry

Chiung-Ju Liang () and Ming-Li Yao ()

Review of Quantitative Finance and Accounting, 2005, vol. 24, issue 2, 135-157

Abstract: This study integrates general measurements of the information electronics industry based on the concepts of the balanced scorecard, intellectual capital, and intangible assets. The reasons for the difference between the corporate market value and book value are also analyzed, and the impacts of both financial and nonfinancial perspectives on the corporate value are explored. The component items of net income are found to be more effective in explaining the value of a company than merely looking at the bottom line. It is concluded that RI and EVA have significant and similar explanatory power in terms of evaluating the performance of the information electronics industry. Moreover, a review of the nonfinancial performance of information electronics companies on the basis of segmented samples reveals significant results in terms of explaining the value of the upstream, midstream, and downstream companies. Copyright Springer Science + Business Media, Inc. 2005

Keywords: balanced scorecard; intellectual capital; residual income; economics value added; incremental information content (search for similar items in EconPapers)
Date: 2005
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DOI: 10.1007/s11156-005-6334-1

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