The incremental information content of earnings and cash flow from operations affected by their extremity
Article Abstract:
Prior studies on financial returns have shown that information on extreme cash flows and extreme earnings is less useful than moderate cash flows and moderate earnings, and they also report cash flows as being supplementary to earnings in corporate valuations. This paper uses data from United States capital markets to demonstrate how supplementary cash flows may be affected by extreme cash flows
Publication Name: Journal of Business Finance and Accounting
Subject: Business
ISSN: 0306-686X
Year: 2003
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Positive (zero) NPV projects and the behavior of residual earnings
Article Abstract:
This paper analyzes residual earnings' time-series behavior as it applies to positive net present value (NPV) opportunities ( rents). The Ohlson model is shown here to allow for positive NPV opportunities, in contradiction to some frequently made claims.
Publication Name: Journal of Business Finance and Accounting
Subject: Business
ISSN: 0306-686X
Year: 2003
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Discussion of positive (zero) NPV projects and the behavior of residual earnings
Article Abstract:
James A.Ohlson's model for analyzing the time series of residual earnings is discussed here. The relationships among accounting rules, unbiased accounting and non-zero net-present-value opportunities are noted.
Publication Name: Journal of Business Finance and Accounting
Subject: Business
ISSN: 0306-686X
Year: 2003
User Contributions:
Comment about this article or add new information about this topic:
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