Existing empirical evidence suggests that residual income valuation models based on historical cost accounting considerably underestimate equity values. One possible explanation is the use of historical cost accounting under inflationary conditions. In this paper, we use a residual income...

This paper articulates the links between relevance of an earnings component in forecasting (abnormal) earnings and its relevance in valuation in a nonlinear framework. The analysis shows that forecasting relevance does not imply valuation relevance even though valuation irrelevance is implied by...

This paper compares and contrasts two accounting information systems, the aggregate earnings system and the disaggregated cash flow/accrual system, examining their relative performance in stock valuation and in forecasting of earnings. It finds, in general, that the forecasts of earnings and...

The complexity involved in the pricing of American style basket options requires careful consideration of both computational efficiency and accuracy. The conventional assumption of lognormal distribution for the value of a basket is the key for the trade-off. This paper examines the mispricing...

Draws on the results of recent research on the process of skills learning and training in small enterprises as a way of exploring some of the implications for policy makers and their advisers.

It has been argued that workplace skills are becoming more polarised in Britain. This tendency is sometimes considered to be a factor contributing to the process of social exclusion and growing wage inequality. Skill polarisation has therefore been the focus of renewed academic and--since the...

We investigate the sources of supply of several core skills, using an innovative approach to skills measurement that involves adapting a job analysis methodology and applying it in a survey context. We then estimate the determinants of skills supply using a production function model. The main...