Pennacchi, George G.; Santos, João A. C. - 2018
Historically, nonfinancial corporations relied on performance targets linked to their EPS. Up until the 1970s, banks … these differences because EPS growth is better at explaining nonfinancials' stock market value while ROE is better at … shareholder value, its performance based on ROE is much better than its performance based on EPS. We argue that such a situation …
