search query: @indexterm PROFIT FORECASTING / total: 48
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| Author: | Laitinen, E. K. |
| Title: | Estimation of internal rate of return under nonsteady conditions |
| Journal: | Journal of Business Finance and Accounting
1997 : OCT-DEC, VOL. 24:9-10, p. 1217-1251 |
| Index terms: | RATE OF RETURN UNCERTAINTY PROFIT FORECASTING GROWTH ESTIMATION LAG MODELS |
| Language: | eng |
| Abstract: | This paper presents a method to estimate internal rate of return (IRR) from published financial statement data under nonsteady conditions. The IRR is allowed to systematically change over time, and the method provides an estimate for the current profitability of periodic total expenditure, its rate of change and the company-level profitability. Competing steady and nonsteady statistical models are evaluated by simulation showing that a restricted nonsteady model may give the most reliable estimates. The model is applied to Finnish companies to illustrate how to use it in practice. |
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