Valuation research becoming or emerging as a central theme in the accounting research of the 1990s does not become of a surprise to many finance practitioners considering the compulsory requirement from companies to submit historical information and the need for the decisions makers to have more reliable basis for risky ventures. Such research basically focuses on the use of accounting information to estimate shareholder value. Therefore, this literature has had an impact not only on the research agendas of academics, but also on the day-to-day work of practitioners as changes happens not only the textbooks but the system and speed with which decision are to be made. This paper has therefore all the good reasons to look ahead, as valuation promises to be an area of continued growth, with many new opportunities and challenges[1] for many to go into.
More authors are expressing and recognizing the relevance of the accounting numbers for stock valuation. They include Lin, Yi-Mien; Hsu, Yun-Sheng and Liao, Woody M., who in their research commented that “Our findings provide further evidence that accounting numbers are important determinants of the firm value and dividends are closely related to the present discounted value of future earnings and the firm value.” [2]
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