The Value Relevance of Organsation Capital

2015-10-08 10:42:56

Dear students, faculty and staff,

Nazarbayev University Graduate School of Business invites you to Research Seminar
by Davlatbek Abduvaliyev

WHEN: Tuesday, October 20th, 12.00 – 13.00
WHERE: Block C-3/new GSB/GSPP Building, 1st floor, Room 1.010

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In this study, we apply the basic approach of Lev et al. (2009) to estimating organisation capital using UK data in order to provide further evidence of the ability of their empirical construct to explain future performance. We extend their study by setting any association between the organisation capital measure and future performance in a value relevance framework in which the incremental ability of the measure to help the prediction of future performance is associated with the incremental ability of the measure to explain market value. Using earnings as the measure of performance, the results of the empirical tests reported in this paper suggest that the organisation capital measure is incrementally positively associated with future earnings and equity market value. There is also solid evidence of a positive impact of the organisation capital measure on the persistence of earnings in the UK, in particular for profit firms. Associated with this evidence is evidence that the organisation capital measure is also positively associated with the coefficient of earnings in our accounting-based valuation models in the UK, again for profit firms. Overall, our measure of organisation capital seems to be value relevant because it helps in the prediction of future earnings and, for profit firms, is positively associated with the persistence of earnings.

Davlatbek holds a PhD from Manchester Business School. His research interests encompass identification, measurement and valuation of firm intangible assets not recognised by the GAAP.
Davlatbek has more than twelve years of teaching experience in business schools. He delivered lectures in KIMEP, KBTU, UIB and KazEU. He has also served in management consultancy and delivered business training programs to multinational companies in Kazakhstan and Russia. Amongst his clients have been oil and gas companies, commercial banks, global trade companies and the National Bank and the Government of the RK.
Davlatbek is an FCCA; passed CFA Level 1 exam; and has the CMA designation (currently inactive member in the IMA).