Resource margin accounting: an elucidation and preliminary empirical testing
Johnson, Peter and Thomas, Howard, 1943-. (2007) Resource margin accounting: an elucidation and preliminary empirical testing. MANAGEMENT DECISION, 45 (3). pp. 420-433. ISSN 0025-1747Full text not available from this repository.
Official URL: http://dx.doi.org/10.1108/00251740710745052
Purpose - The aim of this paper is to describe "resource margin accounting" (RMA) as a valuation framework in strategic analysis.
Design/methodology/approach - The paper defines RMA as an improved framework for valuation in competitive strategy, relative to existing value-added and cash flow methods. The framework was tested on a sample of 300 US manufacturing companies between 1983 and 1998.
Findings - The paper finds that the resource margin approach has greater explanatory power than traditional market-to-book valuation measures.
Practical implications - The resource margin approach is methodologically and empirically superior to economic value-added (EVA) and cash flow models of valuation.
Originality/value - The paper presents and tests a new valuation method: RMA.
|Item Type:||Journal Article|
|Subjects:||H Social Sciences > HF Commerce
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
|Divisions:||Faculty of Social Sciences > Warwick Business School|
|Journal or Publication Title:||MANAGEMENT DECISION|
|Publisher:||EMERALD GROUP PUBLISHING LIMITED|
|Number of Pages:||14|
|Page Range:||pp. 420-433|
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