On transitory earnings

James Arvid Ohlson

Research output: Journal article publicationJournal articleAcademic researchpeer-review

142 Citations (Scopus)


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 languageEnglish
Pages (from-to)145-162
Number of pages18
JournalReview of Accounting Studies
Issue number3-4
Publication statusPublished - 1 Dec 1999
Externally publishedYes

ASJC Scopus subject areas

  • Accounting
  • Business, Management and Accounting(all)


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