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 |
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Pages (from-to) | 109-115 |
Number of pages | 7 |
Journal | Journal of Accounting and Economics |
Volume | 11 |
Issue number | 2-3 |
DOIs | |
Publication status | Published - 1 Jan 1989 |
Externally published | Yes |
ASJC Scopus subject areas
- Accounting
- Economics and Econometrics
- Finance