Analysis of divisional profitability using the residual income profile: a note on cash flows and rates of growth

The present note expands on the (Frigo and Ciecka (1995)) residual income profile in order to analyze the relationship between residual income (RI), return on investment (ROI) and cash flows. The results indicate that in addition to the question of whether RI and ROI are useful in divisional performance evaluation, both measures also have an important role to play as a means of approximating actual cash flow. © 1998 John Wiley & Sons, Ltd.

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Year of publication:	1998
Authors:	Kousenidis, Dimitrios V. ; Negakis, Christos I. ; Floropoulos, Iordanis N.
Published in:	Managerial and Decision Economics. - John Wiley & Sons, Ltd., ISSN 0143-6570. - Vol. 19.1998, 1, p. 55-58
Publisher:	John Wiley & Sons, Ltd.

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Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005209328