Ungarbled earnings and dividends. An analysis and extension of the Beaver, Lambert, and Morse valuation model

James Arvid Ohlson

doi:10.1016/0165-4101(89)90002-5

Ungarbled earnings and dividends. An analysis and extension of the Beaver, Lambert, and Morse valuation model

James Arvid Ohlson

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

20 Citations (Scopus)

Abstract

This paper examines the Beaver, Lambert, and Morse (1980) valuation model that capitalizes 'ungarbled' earnings. The analysis identifies the model's unspecified capitalization factor, and it emphasizes that a complete model of ungarbled earnings must focus on the joint stochastic behavior of earnings and dividends. It is shown that expected ungarbled earnings, scaled for a constant, equal expected dividends. Except for the scale factor, no apparent economic reasons suggest that ungarbled earnings are any different from dividends.

Original language	English
Pages (from-to)	109-115
Number of pages	7
Journal	Journal of Accounting and Economics
Volume	11
Issue number	2-3
DOIs	https://doi.org/10.1016/0165-4101(89)90002-5
Publication status	Published - 1 Jan 1989
Externally published	Yes

ASJC Scopus subject areas

Accounting
Economics and Econometrics
Finance

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10.1016/0165-4101(89)90002-5

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Ungarbled earnings and dividends. An analysis and extension of the Beaver, Lambert, and Morse valuation model

Abstract

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