A Comparative Study of the Time-Series Behavior and Predictive Ability of Historical Cost Earnings and General Purchasing Power Adjusted Earnings: An Empirical Investigation

The knowledge concerning the time-series properties and predictive ability of accounting numbers are of considerable importance for various areas of research. However, there exists no descriptive evidence in relation to the underlying time-series behavior and predictive ability of general purchasing power (GPP) accounting numbers. Accordingly, the primary objective of this study is to gather empirical evidence on the time-series behavior of both historical cost and GPP adjusted earnings series, and to use the Box-Jenkins (B-J) methodology to compare the relative predictive ability of the historical earnings series against the GPP annual earnings series. Both deflated and nondeflated earnings were examined. Also, in order to assess the effect of the monetary gains or losses on the time-series behavior of GPP data, each of the income measures were calculated with and without inclusion of the monetary gains or losses.

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Accountancy

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2014

Author dc:creator

• Shalchi, Hossein

• Business Administration, Accounting

Identifier

(UMI)AAI8203586

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/71361