Alex Faseruk

An examination of US dollar risk management by Canadian non‐financial firms

Purpose – The purpose of this paper is to examine the impact of US dollar exchange rate risk on the value of Canadian non‐financial firms.Design/methodology/approach – The sample, from the Compustat database, includes all non‐financial Canadian firms with sales over

A review of accrual accounting and cash flow techniques for use in equity valuation

100 million. The study segregates firms into hedging and non‐hedging groups and applies statistical techniques to test if hedging enhances value.Findings – The results demonstrate that Canadian firms that have higher levels of US

Institutional lending to knowledge-based businesses

sales tend to use derivatives more frequently through higher levels of US

Valuation in Public Sector Agencies: Impact on Financial Reporting Through the Implementation of International Financial Standards: Focus on Canadian Workers Compensation Boards

exposure. Firms that have both US sales and assets appear less likely to use hedging. Firms with an American subsidiary and use financial instruments to hedge have higher values. When operational hedging is used with financial hedging, it is a value enhancing activity increasing their market‐to‐book by 14 per cent and market value‐to‐sales by 40 per cent. Incremental impact of these two hedging strategies is to enhance value by 7 per cent.Res...

Strategic Risk, Risk Perception and Risk Behaviour: Meta-Analysis

Purpose – The purpose of this paper is to survey the accounting concepts of valuation and the direction of accounting research in terms of development of valuation models. It also simulates some of the models. Moreover, the Dividend Discount Model, a financial model, is the foundation of a number of accounting based models and is discussed.Design/methodology/approach – The objectives are achieved by surveying the literature for accounting models and empirical evidence for the model. The methodology also incorporates simulating the models under different conditions to find out the valuation predicted.Findings – It was found out that the accounting models predict that accrual principles play a role in increasing the discrepancy between the book value and the market value of equity. Some of the recent valuation models, like the Feltham–Ohlson linear information model, incorporate accrual principles like conservatism. Though the empirical evidences are mixed for these models, it provides a theoretical framewo...