1. MEASURING THE RATE OF RETURN ON CAPITAL.
- Author
-
SAMPSON, ANTHONY A.
- Subjects
RATE of return ,CAPITAL ,FINANCE ,PROFIT ,CORPORATE profits ,REGRESSION analysis - Abstract
This paper presents the results of an attempt to estimate the rate of return on capital by regression analysis of financial data. A model relating current profits to current and lagged inflows of long-term capital is considered and fitted to a set of data from the British Mechanical Engineering Industry. Both time-series and cross-section data are used. Acquisitions of long-term capital are measured by summing depreciation provisions, retained earnings and receipts from issues of ordinary shares and instruments of long-term debt. [ABSTRACT FROM AUTHOR]
- Published
- 1969
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