On transitory earnings

James Arvid Ohlson

On transitory earnings

James Arvid Ohlson

Research output: Journal article publication › Journal article › Academic research › peer-review

Abstract

The paper develops a concept of transitory earnings and contrasts this source of earnings to "core" (or recurring) earnings. It is shown that any two of the following three attributes of transitory earnings imply the third: (i) forecasting irrelevance with respect to next-period aggregate earnings, (ii) value irrelevance, and (iii) unpredictability. The paper makes the case that the current "dirty surplus" items make sense, especially if one expands the valuation perspective to also allow for agency considerations.

Original language	English
Pages (from-to)	145-162
Number of pages	18
Journal	Review of Accounting Studies
Volume	4
Issue number	3-4
Publication status	Published - 1 Dec 1999
Externally published	Yes

ASJC Scopus subject areas

Accounting
General Business,Management and Accounting

Cite this

@article{1a3684b11b784d3391ad355e23d75667,

title = "On transitory earnings",

abstract = "The paper develops a concept of transitory earnings and contrasts this source of earnings to {"}core{"} (or recurring) earnings. It is shown that any two of the following three attributes of transitory earnings imply the third: (i) forecasting irrelevance with respect to next-period aggregate earnings, (ii) value irrelevance, and (iii) unpredictability. The paper makes the case that the current {"}dirty surplus{"} items make sense, especially if one expands the valuation perspective to also allow for agency considerations.",

author = "Ohlson, {James Arvid}",

year = "1999",

month = dec,

day = "1",

language = "English",

volume = "4",

pages = "145--162",

journal = "Review of Accounting Studies",

issn = "1380-6653",

publisher = "Springer New York",

number = "3-4",

}

TY - JOUR

T1 - On transitory earnings

AU - Ohlson, James Arvid

PY - 1999/12/1

Y1 - 1999/12/1

N2 - The paper develops a concept of transitory earnings and contrasts this source of earnings to "core" (or recurring) earnings. It is shown that any two of the following three attributes of transitory earnings imply the third: (i) forecasting irrelevance with respect to next-period aggregate earnings, (ii) value irrelevance, and (iii) unpredictability. The paper makes the case that the current "dirty surplus" items make sense, especially if one expands the valuation perspective to also allow for agency considerations.

AB - The paper develops a concept of transitory earnings and contrasts this source of earnings to "core" (or recurring) earnings. It is shown that any two of the following three attributes of transitory earnings imply the third: (i) forecasting irrelevance with respect to next-period aggregate earnings, (ii) value irrelevance, and (iii) unpredictability. The paper makes the case that the current "dirty surplus" items make sense, especially if one expands the valuation perspective to also allow for agency considerations.

UR - http://www.scopus.com/inward/record.url?scp=0000442733&partnerID=8YFLogxK

M3 - Journal article

SN - 1380-6653

VL - 4

SP - 145

EP - 162

JO - Review of Accounting Studies

JF - Review of Accounting Studies

IS - 3-4

ER -

On transitory earnings

Abstract

ASJC Scopus subject areas

Other files and links

Fingerprint

Cite this