Many companies voluntarily report the information content of alternative performance measures – such as earnings before interest, taxes, depreciation and amortization (EBITDA). Examines the degree to which the individual measures are related to stock returns. Tests the S & P 1500 companies more valuation to be partitioned both overall measures by size as well as subsets of firm-year observations for the expected EBITDA as relevant. Covers circumstances in which this is the case, … bu Read more »

Many companies voluntarily report the information content of alternative performance measures – such as earnings before interest, taxes, depreciation and amortization (EBITDA). Examines the degree to which the individual measures are related to stock returns. Tests the S & P 1500 companies more valuation to be partitioned both overall measures by size as well as subsets of firm-year observations for the expected EBITDA as relevant. Covers circumstances in which this is the case, but the relevant rating never exceeds that of net income.
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Stephen R. Möhrle,
Möhrle Jennifer A. Reynolds,
James S. Wallace
Source: Business Horizons
7 pages.
Publication Date: Jul 15, 2003. Prod #: BH093-PDF-ENG
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