A simulation-based investigation of errors in accounting-based surrogates for internal rate of return
Article Abstract:
Accounting-based profitability measures are often used by managers, investors, researchers and policy-setting bodies in conducting ex post facto performance evaluations of firms. A study has been conducted to compare the nature and extent of error with which accounting rate of return (ARR) and the conditional estimate of internal rate of return (CIRR) measure the internal rate of return to determine which is the better substitute for IRR. Results suggest that neither accounting-based profitability measure should be used in empirical research without control for known sources of bias.
Publication Name: Journal of Business Finance and Accounting
Subject: Business
ISSN: 0306-686X
Year: 1997
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No let up
Article Abstract:
New takeover bids in the UK seem to appear each day and institutional cash piles are at their highest levels for two to three years, according to BZW. Institutions may choose to invest in equities due to their strong performance which could lead to share price rises, especially in potential bid targets. However if trading statements are disappointing in the interim results season, the market could slow down.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1995
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