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ON THE PREDICTABILITY OF GROWTH IN EARNINGS PER SHARE
Author(s) -
Brandon Charles,
Jarrett Jeffrey,
Khumuwala Saleha
Publication year - 1983
Publication title -
journal of business finance and accounting
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.282
H-Index - 77
eISSN - 1468-5957
pISSN - 0306-686X
DOI - 10.1111/j.1468-5957.1983.tb00438.x
Subject(s) - predictability , earnings , valuation (finance) , economics , earnings growth , earnings per share , econometrics , financial economics , monetary economics , accounting , mathematics , statistics
Arguments are given to support the hypothesis that corporate earnings per share are predictable by simple forecasting models. If income numbers have predictable properties, growth is predictable and theories of corporate valuation become more credible. Notions that EPS growth are completely unpredictable are disputed.