Investment Criteria Research Articles

Evaluation of orphan maintained biological medicinal products in the European Union between 2018 to 2023: a regulatory perspective

ABSTRACT Objectives Orphan medicinal products (OMPs) authorized in the European Union (EU) benefit from market exclusivity, fee waivers, and national incentives. Maintaining orphan status during the marketing authorization application (MAA) requires meeting eligibility criteria, especially demonstrating significant benefit (SB), which is challenging. This study identifies key features linked to successful orphan status maintenance for biological OMPs approved in the EU between 2018 and 2023. Methods Data from European public assessment reports and orphan maintenance assessment reports were analyzed. Results Among the 50 biological OMPs granted orphan designation, 68.0% had to demonstrate SB over existing treatments, with 91.2% leveraging the clinically relevant advantage area, utilizing better clinical efficacy (83.8%) and subpopulation (38.7%) sub-domains. However, 32% did not need to demonstrate SB due to a lack of alternative treatments, most of which were ultra-orphan drugs. Advanced therapy medicinal products and monoclonal antibodies were the most numerous OMP categories, whereas oncology and immunomodulation were the preferred therapeutic areas. Conclusion The Orphan Regulation plays a critical role in advancing treatments for rare diseases, fostering innovation while addressing unmet medical needs. Nonetheless, the insufficient return on investment criterion remains underused, whereas refining major contribution to patient care guidelines and incorporating real-world evidence may enhance regulatory evaluations.

Financial performance of emerging market companies during the COVID-19 pandemic: moderating role of sustainability performance

Purpose This study aims to investigate whether sustainability performance (SP) served as a safeguard for firm profitability (FP) and enhanced corporate resilience in emerging markets during the COVID-19 pandemic. Design/methodology/approach Using a sample of 1,091 firms in 25 emerging markets from 2017 to 2021, this study analyses the moderating role of SP on the relationship between FP and COVID-19 by using hierarchical linear modelling at three levels: (a) time-level; (b) firm-level; (c) country-level. Findings The results indicate that during the years 2020–2021, emerging market firms with robust SP showed better FP in the midst of the COVID-19 pandemic. The findings also indicate that all dimensions of sustainability, i.e. environmental, social and governance (ESG), have significantly affected the FP in the post-COVID period. Hence, adhering to ESG principles aids in alleviating adverse financial repercussions during times of crises. Practical implications This study provides valuable insights for companies and policymakers for finding solutions that may assist them in improving SP globally and enduring crises resiliently. The findings are also relevant to institutional investors that consider SP as an investment criteria. Although the COVID-19 pandemic was temporary, the lessons learned could protect firms from future similar global crises. Originality/value This study enhances the understanding of the contingency relationship between sustainability and financial performance by offering up-to-date empirical insights within the context of emerging markets during the pandemic. It demonstrates how different institutional frameworks influenced the SP–FP association during the crisis. Thus, this paper expands the understanding of crisis management literature and bridges the research void concerning the impact of SP on FP in an emerging market context.

ANALISIS FINANSIAL USAHA PERIKANAN TANGKAP BELAT DI KOTA BONTANG (Financial Analysis of Set Net Fisheries Business in Bontang City)

Indonesian capture fisheries have a responsibility as a source of economic growth, a provider of animal protein food and a source of employment. Bontang City is one of the cities in East Kalimantan with good potential for capture fisheries, from a variety of capture fisheries activities, one of the most widely used fishing gear is the splint. The purpose of this research is to discuss the financial analysis of mullet fishing business. This research uses a sampling method, namely purposive sampling with 30 fishermen respondents who use splint fishing gear in Bontang City. The analysis methods used are NPV, Net B/C, IRR, and Payback Period. The results obtained based on the analysis of the splint fishing business are feasible to continue, when viewed based on the NPV investment criteria, IRR, Net B / C Ratio, Payback Period. The NPV value obtained is Rp.42,119,332, IRR of 87%, Net B / C Ratio of 4.17 and payback period for 1 year 2 months

Kelayakan Usaha Madu Berbasis Eduwisata Lebah Tanpa Sengat Di Pondok Pesantren Kabupaten Lebong

The demand for honey has increased from year to year, based on BPS data, the number of honey imports has increased significantly every year, however, according to the Indonesian Beekeeping Association, honey consumption in Indonesia is still low per year, namely 15-20 grams/capita/year. The Nurul Qur'an Islamic boarding school in Lebong Regency has a stingless bee educational tour to provide education about bees and honey directly as a promotion to visitors. The aim of this research is (1) to determine the feasibility of various non-financial aspects of an edutourism-based honey business through market aspects, technical aspects, legal aspects, management aspects, social, economic and cultural and environmental aspects. (2) to measure the financial feasibility analysis without a training package and homestay facilities (scenario 1) compared to an edutourism-based honey business with a training package and homestay facilities (scenario 2) using investment criteria, namely NPV, Net B/C, IRR, and Payback Period, . Data collection methods include surveys, interviews and document studies, the sampling technique uses purposive sampling. The results of the analysis of non-financial aspects which include market aspects, technical aspects, management and legal aspects, social and economic aspects, and environmental aspects show that this business is feasible to run. The results of the financial analysis seen from the calculation of Payback Period, IRR, NPV and Net B/C show that scenario 1 is more profitable compared to scenario 2. Then for the results of sensitivity analysis using switching values product prices and honey production are more sensitive compared to total fixed costs. costs) and variable costs, so it is recommended to maintain product availability and quality and improve marketing with various effective approaches.

Analisis Kelayakan Finansial Usaha Ternak Ayam Broiler pada Peternak Mitra PT Mitra Sinar Jaya di Kota Atambua

A research was conducted with objectives to analyze income and financial feasibility of broiler farming business run by partner farmers of PT Mitra Sinar Jaya in Atambua City. The research method used was survey. Method of determining sample comprises two stages. First, selection of nine villages sample, purposively, which from three sub-districts in Atambua City represented by three villages. Second, selection of four farmers as respondents from each village, so total number of the respondents were 36 farmers. The selection of the respondents was done based on non-proportional random sampling. Criteria of the respondents were: 1) partner of PT Mitra Sinar Jaya, and 2) the respondents have been raising the broiler farm at least for two years. Primary data were obtained through observation and direct interview based on prepared questionnaires. Secondary data were obtained based on documentation technique from report of relevant institutions and references. Methods of data analysis applied were income analysis and financial feasibility analysis using investment criteria namely B/C, BEPIDR, BEP unit, and PP criteria. The results showed that the average income gained by each farmer from the partnership pattern of broiler farming business was 63,313,679.03/year. Further, the financial analysis showed that the farm B/C was 1.15, BEPunit was 39.33 ST, BEPIDR 55,972,941.18,- and PP was 2.6 years. In conclusion, the broiler farming business in Atambua City was profitable and financially feasible. Therefore, this business needs to be developed and improved.

Kinerja Finansial Usaha Ternak Babi di Kecamatan Rahong Utara Kabupaten Manggarai

A study was conducted in North Rahong District, Manggarai Regency. This research aims to analyze the income and financial feasibility of pig farming businesses in North Rahong District, Manggarai Regency. The sampling method is carried out in two stages. In the first stage, sample villages were determined from 12 villages, 4 sample villages were purposively determined by considering having the largest number of pigs. The second stage of determining sample breeders was carried out non-proportionately at random, where 15 respondents were taken from each village to obtain 60 respondents. Primary data was obtained through direct observation and interviews with breeders based on a list of questions that had been prepared, while secondary data was obtained through documented reports from relevant agencies and literature. The data analysis method is income analysis and financial analysis using the criteria for net investment B/C, BEP unit, BEP rupiah, and Payback Period. The research results show that the average total income is IDR 9,079,804.89/year, namely 37.61% is cash income and 62.99% is non-cash income. The results of the financial feasibility analysis show that the pig farming business in North Rahong District is financially feasible with a B/C value of 0.85, unit BEP of 0.33 ST, Rupiah BEP of IDR 3,200,999.78 and PP value of 1 year (12 month).

STUDI KELAYAKAN USAHA INDUSTRI PEMINDANGAN IKAN DI LINGKUNGAN MAPAK BELATUNG KELURAHAN JEMPONG BARU KECAMATAN SEKARBELA KOTA MATARAM

The potential of fish in Indonesian waters has two seasons, the first is the fishing season which usually occurs between April and November, the lean season occurs between December and March. During the fishing season, fishermen can get catches that exceed the catch capacity for each time they go sailing. The Mapak Belatung Community is a coastal community where most of the population depends on marine products and aquatic animal cultivation, one of which is fish. This is what finally gave birth to fish smoking activities. Unsold fresh fish are processed into pindang fish by fisherwomen in a simple way and then marketed in traditional markets around Mataram City. The purpose of this study was to determine the feasibility of developing a fish smoking industry in the Mapak Belatung Environment, Sekar Bela District, Mataram City when viewed from the investment criteria of Net Present Value (NPV), Net Benefit Cost Ratio (Net B / C), Gross Benefit Cost Ratio (Gross B / C), Profitability Ratio (PR) and Internal Rate of Return (IRR). Based on the calculation of Net Present Value, it shows that the total NPV is Rp. 5,722,264, this means that the palm oil industry business at the research location is feasible to continue because the NPV result is positive (+). The calculation of Net B/C shows that the result is greater than 1 or 1.75, this means that the benefit obtained is 1.75 times the cost or expenses incurred. Based on the calculation of Gross Benefit Cost Ratio, it has a value greater than 1 (> 1), which is 1.233, meaning that the palm oil industry business at the research location is feasible to run, likewise the calculation result of Profitability ratio has a value greater than 1 (> 1), which is 1.97, meaning that the palm oil industry business at the research location is feasible to run. The Internal Rate of Return (IRR) of the palm oil industry at the research location has a value of 17.8 percent or greater than the applicable interest rate

Sustainability and firm value: A multivariate regression analysis in the clothing industry

Firms, recognizing their Corporate Social Responsibility (CSR), are becoming catalysts for societal change by integrating Environmental, Social and Governance (ESG) criteria into their activities. The fashion industry exemplifies this effort, with an increasing number of companies embracing sustainability and ethical practices. In this context, our purpose is to provide a clear and comprehensive picture of the link between sustainability and business performance in the fashion industry. This work presents a Multivariate Regression Analysis, scrutinizing both external perspectives through stock prices and internal perspectives via profitability indices. Our aim is to discern the intricate relationship between sustainability practices and financial performance within the fashion industry, aligning ESG criteria with long-term economic success. Our regression analysis reveals a significant positive correlation between ESG scores and stock prices, indicating investor recognition of ESG performance as a crucial investment criterion. However, when focusing internally on profitability, the ESG score does not exhibit statistical significance, suggesting a yet-to-be-established connection between ESG policies and corporate profitability. This study underscores the evolving role of companies as sustainability promoters, emphasizing the crucial role of ESG performance in shaping investor perceptions. Nevertheless, it also highlights the need for further exploration into the intricate relationship between sustainable policies and corporate profitability. As businesses increasingly embrace sustainability, in fact, it could become paramount for informed decision-making and fostering ethical societal and environmental progress.

Developing Islamic-sustainable and responsible investment (i-SRI) criteria based on the environmental, social and governance (ESG) concept

Purpose The practices of sustainable and responsible investment (SRI) among Islamic financial institutions (IFIs) nowadays still rely on the existing environmental, social and governance (ESG) criteria. However, based on observation, some of the existing criteria listed by the reports of certain authorities and organizations do not seem to be aligned with Shariah principles. Therefore, this study aims to investigate those criteria to help develop Islamic-SRI (i-SRI) criteria based on the ESG concept. Design/methodology/approach This study adopted the qualitative method via content analysis of documents and interviews with experts. Findings Based on the analysis, a set of i-SRI criteria is developed based on the ESG concept, of which 33 elements are environmental, 50 elements are social and 26 elements are governance issues. Overall, this study finds that there is no obvious contradiction with the Islamic philosophy in the existing ESG criteria, with the exception of four criteria, i.e. promoting human rights, freedom of expression, freedom of censorship and freedom of association under social criteria. These four existing criteria are not aligned with Islamic teaching and not appropriate with Islamic ESG criteria. Practical implications The creation of Islamic ESG criteria can assist relevant authorities to improve the current ESG criteria and to embed an Islamic perspective within it. Originality/value This study developed a set of i-SRI criteria, which may be suitable as a source of reference to relevant parties.

Coffee Processing Business Feasibility In BUMDes Eka Giri Karya Utama Wanagiri Village, Buleleng Regency Bali Province

The potential for good coffee plantation yields needs to be developed and utilized to improve the village economy, which is the basis for establishing BUMDes Eka Giri Karya Utama. The development of this business unit is aimed at supporting an integrated coffee processing industry and being able to produce more efficiently and be able to produce products according to dynamic market demands. The research objectives were to describe governance, to analyze financial feasibility, and to analyze the level of sensitivity of the coffee processing unit in BUMDes Eka Giri Karya Utama. This research was made using descriptive analysis and business feasibility analysis with the investment criteria used being NPV (Net Present Value (NPV), IRR (Internal Rate of Return), Net Benefit-Cost Ratio (Net B/C), Payback Period, and sensitivity analysis. The type of data used is primary data collected by in-depth interviews, field observations, and literature study. There are two variables in this study, namely the benefits and costs variables. The results of the study show that the Village Owned Enterprises in their establishment are managed with the spirit of wanting to improve the village economy, making the village an independent village with all the potential that exists in the village. BUMDes management is carried out in a professional, transparent, participatory, and sustainable manner. sources of funds for this business unit come from the Ministry of Villages, Development of Disadvantaged Regions and Transmigration, and the local village government. Based on the results of the financial analysis, the NPV value was IDR 679,311,964.218, IRR was 31,60%, Net B/C was 2,85 and PP was 4 years 7 months 2 days. Furthermore, the results of the sensitivity analysis with an increase in operational costs by 25.18% obtained an NPV of IDR 434,079,320.45, an IRR of 23.17%, and a net B/C of 2.12. Then for the assumption of a 14.28% decrease in revenue, an NPV of IDR 388,934,679.50, an IRR of 22.02%, and a Net B/C of 2.02 are obtained. This coffee processing business unit is feasible. After all, it can provide benefits for the manager because it meets the investment criteria. Based on the sensitivity analysis, the assumption of a decrease in revenue is more sensitive than an increase in operational costs. In the future, for business development, managers need to innovate so that products become more attractive and have competitiveness as well as invest in human resources and marketing.

Coffee Processing Business Feasibility In BUMDes Eka Giri Karya Utama Wanagiri Village, Buleleng Regency Bali Province

The potential for good coffee plantation yields needs to be developed and utilized to improve the village economy, which is the basis for establishing BUMDes Eka Giri Karya Utama. The development of this business unit is aimed at supporting an integrated coffee processing industry and being able to produce more efficiently and be able to produce products according to dynamic market demands. The research objectives were to describe governance, to analyze financial feasibility, and to analyze the level of sensitivity of the coffee processing unit in BUMDes Eka Giri Karya Utama. This research was made using descriptive analysis and business feasibility analysis with the investment criteria used being NPV (Net Present Value (NPV), IRR (Internal Rate of Return), Net Benefit-Cost Ratio (Net B/C), Payback Period, and sensitivity analysis. The type of data used is primary data collected by in-depth interviews, field observations, and literature study. There are two variables in this study, namely the benefits and costs variables. The results of the study show that the Village Owned Enterprises in their establishment are managed with the spirit of wanting to improve the village economy, making the village an independent village with all the potential that exists in the village. BUMDes management is carried out in a professional, transparent, participatory, and sustainable manner. sources of funds for this business unit come from the Ministry of Villages, Development of Disadvantaged Regions and Transmigration, and the local village government. Based on the results of the financial analysis, the NPV value was IDR 679,311,964.218, IRR was 31,60%, Net B/C was 2,85 and PP was 4 years 7 months 2 days. Furthermore, the results of the sensitivity analysis with an increase in operational costs by 25.18% obtained an NPV of IDR 434,079,320.45, an IRR of 23.17%, and a net B/C of 2.12. Then for the assumption of a 14.28% decrease in revenue, an NPV of IDR 388,934,679.50, an IRR of 22.02%, and a Net B/C of 2.02 are obtained. This coffee processing business unit is feasible. After all, it can provide benefits for the manager because it meets the investment criteria. Based on the sensitivity analysis, the assumption of a decrease in revenue is more sensitive than an increase in operational costs. In the future, for business development, managers need to innovate so that products become more attractive and have competitiveness as well as invest in human resources and marketing.

Energy-saving strategies to convert existing campus to smart campus: a conservative method analysis

Energy consumption has wide applications in the construction industry. The pattern of energy demand depends on the nature of energy usage in accordance with time. Prominence is given to meet the demand without forfeiture of energy. This paper focuses on the importance of developing a smart campus and energy management. In the present study, a prominent engineering institute located in Karnataka, India, is considered for analysis. The approaches considered here are installing solar roof panels and replacing existing electrical fixtures with light-emitting diode (LED) fixtures. The cost and energy consumption analysis before and after the application of these methods will give a strong image of how energy and money can be saved and are useful for society. The initial investment may slightly be high but the payback period is quite early. Results of the study indicate that the initial investment required for solar panel installation and replacement of existing electrical fixtures with LED fixtures for interiors and corridors at the institution has proved worthwhile by various investment criteria used in the project. The study implicates a positive step towards energy-saving strategies, a revolutionary change in the energy sector and the development of the country.

A Theory of Socially Responsible Investment

Abstract We characterize the conditions under which a socially responsible (SR) fund induces firms to reduce externalities, even when profit-seeking capital is in perfectly elastic supply. Such impact requires that the SR fund’s mandate permits the fund to trade off financial performance against reductions in social costs—relative to the counterfactual in which the fund does not invest in a given firm. Based on such an impact mandate, we derive the social profitability index, an investment criterion that characterizes the optimal ranking of impact investments when SR capital is scarce. If firms face binding financial constraints, the optimal way to achieve impact is by enabling a scale increase for clean production. In this case, SR and profit-seeking capital are complementary: Surplus is higher when both investor types are present.

Is investing in food small and medium enterprises a viable path to improved nutrition in Sub‐Saharan Africa? A multidisciplinary perspective

AbstractThrough the perspectives of impact investors, and the nutrition community, this paper explores whether impact investment in food‐related small and medium enterprises (SMEs) creates a viable path to improved nutrition in Sub‐Saharan Africa. From the nutrition perspective, investment in food SMEs could help address coexisting multiple forms of malnutrition by shifting nutritional quality of available foods. From the investor perspective, attractiveness of investment in food SMEs depends on financial risks, how costs are passed on to consumers, and probability of impact. Clear nutritional objectives and investment criteria are needed, as well as research to maximize the potential of this innovative approach.

The Feasibility Analysis of the Cinnamon (Cassiavera) Farming in the Village of Koto Agung Sub-District Keliling Danau Kerinci Regency

Cinnamon (cassiavera) farming in Kerinci Regency has not been carried out economically. This can be seen from the pattern of cinnamon harvest that has not been carefully planned, some farmers harvest at the age of 20 years or even more, but some farmers harvest cinnamon when the price is high even though the cinnamon plant is still young, namely 5– 8 years. In connection with this situation, the authors encourage the author to examine how the use of costs and income in cinnamon farming. This study aims to determine the general description of Cinnamon (Cassiavera) farming in Koto Agung Village, Keliling Danau District, Kerinci Regency, to determine the amount of cinnamon (cassiavera) farming income in Koto Agung Village, Keliling Danau District, Kerinci Regency, and to determine the feasibility of cinnamon (cassiavera) farming in Koto Agung Village, Keliling Danau District, Kerinci Regency. The analytical method used in this research is descriptive quantitative using farm analysis and the financial feasibility of farming with three investment criteria, including NPV, Net B/C ratio, and IRR. The results of the analysis show that the farming system in the research area is still relatively simple and traditional. The average production of cinnamon (cassiavera) farming is 4,548.4 kg per harvest with an average income of IDR. 170.169.294.00,-. Cinnamon (cassiavera) farming with an average land area of ​ 0.61 Ha in Koto Agung Village is feasible to be cultivated with the results of a business feasibility analysis on the investment criteria of Net Present Value of IDR 215,237,894.00,-, Net B/C Ratio is 4.39, and the IRR is 17.436%.

News and ESG investment criteria: What’s behind it?

News written in the press about different companies generates consumer feelings that can condition the reputation of these companies and, consequently, their financial results. One of the practices that might improve a company’s reputation is the Environmental, Social and Governance (ESG) investment criteria. In this research, using Natural Language Processing techniques like Sentiment Analysis and Word2Vec, we detected those ESG-related terms that the written press uses in news articles about companies. Thus, we have been able to discover and analyze those terms that improve sympathy toward companies, and those that worsen it. Our findings show that those terms related to sustainable development, good social practices and ethical governance improve the general public’s opinion of a company, while those related to greenwashing and socialwashing worsen it. Therefore, this methodology is valid for enabling companies to detect those terms that improve or worsen their reputation, and thus help them make decisions that improve their image.

ANALISIS KELAYAKAN BUDIDAYA SARANG BURUNG WALET DI DESA BADAK BARU KECAMATAN MUARA BADAK (Studi Pada Usaha Sarang Burung Walet Pak Nassarudin)

Currently, in the Muara Badak sub-district, many people have built swallow nests. This area is suitable for swallow cultivation because of its location close to the beach, nature that is still free from pollution, and close to forests that are still wide open. The high selling price and large capital make it difficult for wallet farmers who are already cultivating or prospective new Sawang wallet farmers to make a decision to invest. Ironically, many end up stopping their business in the middle of the road because they are considered a failure. Therefore, it is necessary to do a business feasibility analysis before starting a business. Sampling was carried out purposively, namely Mr. Nassaruddin's Wallet Nest Business with the consideration that it had been in operation for the last twelve years until 2023 and had a three-level wallet bird's nest building by calculating the NPV, Net B/C, IRR, and PP values. The results of this study are that the yields obtained can reach tens of millions of rupiah, In the financial feasibility analysis based on investment criteria with a factor discount of 10%, it can be produced as follows: NPV value > 0, which is IDR 580,147,000.00, Net B/C value > 1, which is 5.12, IRR value > i, which is 29.21%, and PP value is 6.758 years. These results indicate that Pak Nassarudin's Swallow's Nest Business is feasible to implement or continue.

Aiding philanthropic venture capitalists investing in social enterprises: A multi‐criteria decision‐making approach

AbstractSocial enterprises have emerged as promising solutions for addressing environmental and societal challenges. To enhance their access to financial capital and align their business proposals with the preferences of impact investors, it is crucial to understand how Philanthropic venture capitalists (PhVCs) evaluate potential portfolio companies. This study introduces a framework to assist PhVCs in making more informed investment decisions, fostering successful, long‐term partnerships between investors and investees. The proposed approach begins by determining the significance of investment criteria using the Best‐Worst Method (BWM). Subsequently, the performance of portfolio companies is evaluated, ultimately identifying the most favorable investment opportunities. We apply this framework to a Dutch philanthropic venture capitalist, and our analysis reveals that ‘Potential’ and the ‘Management team’ rank highest in terms of investment criteria importance, while ‘Assessment of the deal’ and ‘External environment’ carry lower significance. Furthermore, our approach, incorporating the BWM outcomes, considers investors' personal preferences and offers a method for ranking portfolio companies based on their value and performance.

Increased competency in preparing feasibility study documents for pasteurized milk processing business

This study aims to analyze the business feasibility of the pasteurized milk production reactivation program in the Milk Processing (MP) business unit. Feasibility analysis is carried out based on technical and production aspects, market and marketing aspects, management and human resource aspects, and financial aspects. The research method uses business feasibility analysis methods with observation, interview, and literature study approaches. The data collected consists of primary data and secondary data. Primary data collected in the form of questionnaires given to consumers in expressing their opinions on marketing aspects. Furthermore, the secondary data used includes financial statements, sales reports, and production reports of the MP business unit of PT Agronesia. The results showed that the plan to re-operate the MP-BMC business unit of PT. Agronesia with a planned production of three products, namely pasteurized milk, yogurt, and ice cream estimated in the next 10 years is feasible to run. This feasibility is viewed from the financial aspect by calculating investment criteria, namely Net Present Value (NPV), Interest Rate of Return (IRR), Net Benefit Cost Ratio (B/C Ratio), and Pay Back Period (PBP), which is supported by the feasibility of other business managerial aspects.

Rating to economic profit: Valuation properties, implementation issues, and the justification of target prices

ABSTRACT This study offers a comprehensive theoretical and empirical analysis of a fundamentals-based investment criterion (HSBC’s Rating to Economic Profit – REP). By employing a large sample of US-listed firms over a 12-year time-period and conducting univariate, multivariate and portfolio analyses, we provide robust empirical results that support the ability of REP to explain contemporaneous stock market valuations, justify financial analysts’ target prices, and predict one-year ahead stock returns. Through content analysis of selected financial analysts’ equity research reports, we also provide some descriptive evidence of the usefulness of accrual accounting numbers over dividends for valuation purposes. To the best of our knowledge, this is the first academic study that offers a comprehensive analysis of REP as a value-based stock screening method that should be of interest to market-based accounting researchers, valuation educators, and capital market participants.