This paper investigates which accounting variable has superior predictive ability for future cash flow: current cash flow from operations, or current earnings. The question is examined in an Australian context for the years 1995 to 2005, on a sample of 350 firms. The question is also examined by...

Previous evidence suggests that the implied volatility from equity index options, as a measure of stock market uncertainty, can provide "forward-looking information" about the stock–bond return correlation. This paper uses an alternative regime-switching autoregressive model to characterize...

In this paper we develop a theoretical model to explain raw returns and abnormal returns. We show that returns can be explained in terms of levels and changes in earnings and dividends. This contrasts with empirical work which typically uses only a subset of these variables. The model also...

This paper aims to explain why firms do not use NPV for all capital budgeting decisions. Differential usage is attributed to the cost of information and the incomplete dissemination of knowledge of evaluation techniques. Analysis of Australian survey data indicates that 34% of informed managers...

In this paper, the authors present results on the distribution of income in Australia and New Zealand that can be compared with those for a range of other advanced countries. The framework of analysis, concepts, and definitions used have been developed as part of the Luxembourg Income Study...