Fair value measurement and its impact on investment decision-making in common stocks. - Case study of Alliance Insurance Company for the period (2013-2016)
| dc.contributor.author | يحياوي, مفيدة | |
| dc.date.accessioned | 2019-03-21T08:04:52Z | |
| dc.date.available | 2019-03-21T08:04:52Z | |
| dc.date.issued | 2018 | |
| dc.description.abstract | This study highlights the impact of applying fair value measurement on the decision-making to invest in common stocks. Firstly, we have overviewed the various concepts related to the measurement methods of fair value as well as their advantages and disadvantages during their application. Secondly, we have presented the definition of investment decision, which takes on of the three forms: Purchase decision, non-trading decision and selling decision. Thirdly, we have discussed the most important models used in the valuation of ordinary shares at a fair value. Namely, we have analyzed the profit-share discount model, the equity equivalent cash model, and the profitability model. To highlight in practice the impact of measurement at fair value on the investment-decision in ordinary share, we have studied the case of the Alliance insurance company (2013-2016) which is listed among institutions that belongs to the Algerian stock exchange. By applying one of the studied measurement at fair value models, on the data of the institution in question we got the following findings: - The fair value of ordinary shares of the listed companies on the ASE can be measured using the fair value accounting measurement models. - Accounting measurement at fair value provides appropriate information that reflects the true performance of economic institutions. - The application of fair value measurement on ordinary shares of Alliance Insurance has contributed to the improvement of some of the information provided in accordance with the use of fair value, which helps in taking and rationalizing the financial investment decision. Based on these research findings, the researcher recommends that the institutions listed on the ASE should present the fair value of their assets and liabilities in their annual reports. Which permits to users to make rational investment decisions. - Fair value of shares provides expressive and significant information in expressing the value of the share relative to the rest of the other equity values. Therefore, it is necessary to educate investors on the need to rely on fair value in making their investment decisions | en_US |
| dc.identifier.uri | http://dspace.univ-msila.dz:8080//xmlui/handle/123456789/12182 | |
| dc.publisher | جامعة المسيلة | en_US |
| dc.subject | : historical cost, fair value, investment decision, stock valuation models. Jel Classification Codes: XN1, XN2 | en_US |
| dc.title | Fair value measurement and its impact on investment decision-making in common stocks. - Case study of Alliance Insurance Company for the period (2013-2016) | en_US |
| dc.type | Article | en_US |