Measurement error causes a downward bias when estimating a panel data linear regression model. The panel data context offers various opportunities to derive moment conditions that result in consistent GMM estimators. We consider three sources of moment conditions: (i) restrictions on the...

On theoretical grounds, shareholder returns should be better explained by some version of residual income (operating profit minus a capital charge) than by a profit number solely. However, empirical evidence indicates the opposite. We first investigate whether this 'value metrics puzzle' may be...