The Long-Term Price-Earnings Ratio

The Long-Term Price-Earnings Ratio

Determinants of the Price-to-Earnings Ratio

We examine a firm’s P/E ratio in the context of a model wherein firms make sequential investments in production capacity. In addition to investment growth, our analysis seeks to identify pricing power in the firm’s product markets and accounting conservatism as determinants of the P/E ratio. A benchmark result demonstrates that, given unbiased accounting, the firm’s P/E ratio can be expressed a...

Analysis of oil price behavior in the short term and long term based on the strategy of producers

The strategy are in the planning of oil price changes in the short and long term. Therefore, producers should seek to analyze the behavior of crude oil prices in the short and long term in order to adjust their plans. the price level in the oil market is associated with high fluctuations, many producers in the market seek to reduce exchange risk. This article aims to analyze the behavior of oil...

Long - Term Earnings Losses due to Mass

This paper uses longitudinal data from Social Security records covering up to 30 years of earnings to present the first national estimates of the long-term cost of job displacements during the 1982 recession. We use a new longitudinal data set containing firm size to isolate workers who separate from their stable job during a sudden mass-layoff. When we compare the workers displaced from their ...

Earnings Pressure and Long-Term Corporate Governance: Can Long-Term-Oriented Investors and Managers Reduce the Quarterly Earnings Obsession?

R research has shown that managers in publicly traded companies facing earnings pressure—the pressure to meet or beat securities analysts’ earnings forecasts—may make business decisions to improve short-term earnings. Analysts’ forward-looking performance forecasts can serve as powerful motivation for managers, but may also encourage them to undertake short-term actions detrimental to future co...