In this paper I describe a study of the predictive ability of price-level adjusted and unadjusted historical earnings numbers for a sample of firms in the electric utility industry during the period 1935-1940. The criterion used to assess predictability was an ex post valuation. The ex post valuation was computed by discounting actual net cash flows plus a terminal market value back to base periods which ranged from 1938 to 1941. Ex ante valuations based on adjusted and unadjusted accounting data available at the base periods are compared to the ex post valuations to evaluate the predictive ability of these earnings streams. The test is intended to provide empirical evidence about both the accuracy of predictions based on earnings data in general and the relative predictive abilities of price-level-adjusted and unadjusted earnings numbers. The valuation models used in the empirical test are based on homogeneous risk class models defined by Modigliani and Miller.' The derivation of these models are described in the next section.

External reporting, Semantics, Terminology

Journal Article CES Production Functions a la Samuelson Get access Ashok Guha Ashok Guha Jawaharlal Nehru University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 39, Issue 4, September 1972, Pages 501–503, https://doi.org/10.2307/2296519 Published: 01 September 1972

Most insurance companies are involved in reinsurance activities. For the majority, reinsurance means laying-off portions of the risk that they have assumed in the primary insurance market. A few other companies assume these laid-off risks. Our concern is with the former companies; that is, those seeking to cede a portion of their risk.

Many recent studies of the demand for financial assets have been of an aggregative nature, using time-series data. However, some efforts to disaggregate and rely more heavily on cross-sectional data have yielded substantial improvements in discovering relationships not evident due to aggregation. The purpose of this paper is to continue in this spirit of disaggregation and to estimate the demand for one homogeneous type of financial asset, credit union shares, on a cross-sectional basis.

Journal Article A Paradox in the Theory of Optimal Stabilization Get access A. J. Preston A. J. Preston Queen Mary College, University of London Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 39, Issue 4, September 1972, Pages 423–432, https://doi.org/10.2307/2296510 Published: 01 September 1972

Journal Article On Producer Taxation Get access J. A. Mirrlees J. A. Mirrlees Nuffield College, Oxford Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 39, Issue 1, January 1972, Pages 105–111, https://doi.org/10.2307/2296447 Published: 01 January 1972

Journal Article Corporate Taxation and Dividend Behaviour: a further Comment Get access M. A. King M. A. King University of Cambridge and Harvard University Search for other works by this author on: Oxford Academic Google Scholar The Review of Economic Studies, Volume 39, Issue 2, April 1972, Pages 231–234, https://doi.org/10.2307/2296875 Published: 01 April 1972