THE GROWTH OF EARNINGS: A PREDICTIVE MODEL USING GENERALLY AVAILABLE INFORMATION

The purpose of this study is to develop and test a model to predict the growth of earnings (growth between six years), using generally available information. An underlying theme of this study is whether generally available information can be used to predict the growth of earnings. A random-walk-of-growth model, a random-walk-of-growth-with-drift model, and a random-walk-of-earnings model are used as standards for comparisons.