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

James Arvid Ohlson

Research output: Journal article publicationJournal articleAcademic researchpeer-review

16 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 languageEnglish
Pages (from-to)109-115
Number of pages7
JournalJournal of Accounting and Economics
Volume11
Issue number2-3
DOIs
Publication statusPublished - 1 Jan 1989
Externally publishedYes

ASJC Scopus subject areas

  • Accounting
  • Economics and Econometrics
  • Finance

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