, 2005; Biddle et al., 2009). Companies with more accurate financial reporting and greater control over reporting activities tend to perform better and demonstrate greater cohesion in their operations, as well, and also tend to lean towards more consistent profitability and stability, in addition (Graham et al., 2005; Doyle et al., 2007; Doyle et al., 2007a). Investment levels in firms with more consistent and accurate financial reports were also found to be more in keeping with expected results, signifying that models being used to make investment decisions were more well-founded and themselves more consistent, stable and reliable (Graham et al., 2005). While it is not exactly revolutionary to suggest that greater consistency in knowledge leads to a greater consistency in analysis and projection, the fact that this has been empirically evidenced argues quite strongly for the development of a more concrete and cohesive model of valuation.

Any such model must...
[ View Full Essay]