THE ASSOCIATION BETWEEN COMMON STOCK RETURNS AND ALTERNATIVE PROFITABILITY MEASURES OF CANADIAN COMPANIES
International Journal of Commerce and Management
ISSN: 1056-9219
Article publication date: 1 January 1994
Abstract
This study examines whether non‐historic income measures disclosed by a sample of Canadian firms convey information that is relevant to the evaluation of their performance. The sample firms were partitioned into several portfolios based on two firm‐specific measures which are assumed to capture input cost increases and the firm's ability to pass these increases on to its customers via higher output prices. Several groupings of the firms were performed based on various measures of non‐historic income. In general, the results of this study provide support for an association between market returns on common stock and non‐historic income measures.
Citation
Kanaan, G.K., Gheyara, K.F., Kim, J.B. and Ibrahim, M. (1994), "THE ASSOCIATION BETWEEN COMMON STOCK RETURNS AND ALTERNATIVE PROFITABILITY MEASURES OF CANADIAN COMPANIES", International Journal of Commerce and Management, Vol. 4 No. 1/2, pp. 5-24. https://doi.org/10.1108/eb047284
Publisher
:MCB UP Ltd
Copyright © 1994, MCB UP Limited