Profitability Patterns and Firm Size (Classic Reprint) - Softcover

Treacy, Michael

Softcover

ISBN 10: 1332277268 ISBN 13: 9781332277261

Publisher: Forgotten Books, 2019

Synopsis

Excerpt from Profitability Patterns and Firm Size There continues to be strong interest in the behavior of earnings of corporations. The corporate manager, the shareholder and the corporate lender all stand to gain by a better understanding of the mechanisms by which earnings are generated and of the patterns of earnings associated with particular circumstances. This knowledge could be used to make more profitable strategy decisions in the firm and to forecast more accurately future earnings. For example, a better understanding of the patterns of earnings would lead to more accurate forecasts of future earnings and to more accurate valuation of firms. This, in turn, would allow the investor to more accurately estimate personal wealth. This paper examines the relationship between two measures of corporate success, the level and the variability of corporate profitability. In an earlier study, Bowman found that in general these two variables correlate negatively among firms within a particular industry.[1] This result is tested rigorously using a different time period and different industry definitions, and is found to gain further empirical support. Several possible explanations of the effect are offered and each is discussed in the context of supporting or discrediting evidence found in the research literature. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works.

About this edition

• Publisher: Forgotten Books
• Publication date: 2019
• ISBN 10: 1332277268
• ISBN 13: 9781332277261
• Binding: Paperback
• Number of pages: 52