Universal Journal of Accounting and Finance Vol. 2(6), pp. 161 - 167
DOI: 10.13189/ujaf.2014.020601
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The Association between Firm Value and Productivity under US GAAP and IFRS

Abdullah Hiz ^*
College of Business and Management, Northeastern Illinois University, United States

ABSTRACT

The purpose of this study is to investigate the association between productivity and market value of firms. This study relies on the data that is derived from COMPUSTAT for the time period of 2002-2012 to address the differences of productivity and firm value associations in firms that comply with US GAAP and firms that comply with IFRS. The findings of this study reveal that the productivity is meaningful for associating with the firm's market value in US GAAP adopter firms and there is a strong correlation between productivity and firm value in US GAAP adopter firms. Meanwhile, the association of productivity and firm market value is not significant in IFRS adopter firms. This is consistent with Best [1] study, which finds that the increase in productivity may cause corporate profitability to be zero even negative.

KEYWORDS
Productivity, Net-value Added, US GAAP, IFRS

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Abdullah Hiz , "The Association between Firm Value and Productivity under US GAAP and IFRS," Universal Journal of Accounting and Finance, Vol. 2, No. 6, pp. 161 - 167, 2014. DOI: 10.13189/ujaf.2014.020601.

(b). APA Format:
Abdullah Hiz (2014). The Association between Firm Value and Productivity under US GAAP and IFRS. Universal Journal of Accounting and Finance, 2(6), 161 - 167. DOI: 10.13189/ujaf.2014.020601.