Title: The revaluation of assets as a signalling device: A theoretical and an empirical analysis
Authors: Gaeremynck, Ann ×
Veugelers, Reinhilde #
Issue Date: 1999
Series Title: Accounting and Business Research vol:29 issue:2 pages:123-138
Abstract: In many countries, firms can choose whether or not to report a revaluation in the financial statements. An analytical model is developed to indicate conditions in which it is more likely that successful firms will choose not to revalue assets as a credible signal to potential investors. These industry settings include a high variance in performance and low equity-to-debt ratios. The empirical results for Belgium confirm that successful firms are less likely to revalue assets in those industries. However, only the revaluation of fixed tangible assets and not financial assets seems to be a credible signal. Finally, the results support the choice to revalue, but not the amount of revaluation, as a signaling device
ISSN: 0001-4788
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Research Center Accountancy, Leuven
Department of Managerial Economics, Strategy and Innovation (MSI), Leuven
× corresponding author
# (joint) last author

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