Article
Authors: Casey Iddon (Federation University Australia, Ballarat, Victoria, Australia) , Samanthala Hettihewa (Federation University Australia, Ballarat, Victoria, Australia) , Christopher S. Wright (Higher Education Faculty, Holmes Institute, Victoria, Australia)
Unique fundamentals and severe uncertainty in the junior-mining-sector (JMS) make valuing JMS ventures problematic. However, potentially enormous returns draw many investors into the JMS. While financial-instrument-pricing theory suggests that accounting values/ratios should have little influence on JMS-firm outcomes, this study’s simple OLS and Panel-data findings show strong correlation between those variables and JMS-firm-share prices. After discounting market failure, it is conjectured that JMS nonfinancial factors, share prices and accounting values are co-determined in a simultaneous relationship that is obscurely linked to outcomes. The notions uncovered in this study should greatly interest academics and business sector participants.
Keywords: accounting information, firm valuation, junior mining sector, uncertainty
How to Cite: Iddon, C. , Hettihewa, S. & Wright, C. S. (2015) “Value Relevance of Accounting and Other Variables in the Junior-Mining Sector”, Australasian Accounting, Business and Finance Journal. 9(1). doi: https://doi.org/10.14453/aabfj.v9i1.3