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Title: Valuation implications of alternative income numbers for electric-utility investors

Abstract

This study examines the valuation implications of various historical cost and inflation-adjusted earning numbers of electric utilities. Chapter 1 describes the institutional aspects of historical cost and inflation accounting within this industry, and justifies the separate consideration of electric utilities on these bases. It also discusses the literature on cross-section valuation of equity securities and provides extensions to the theory that explicitly incorporate nonstationarities in the investment opportunity set and multiple earnings numbers posessing different perceived levels of riskiness. Chapter 2 provides the empirical design and summary statistics for the examination of the valuation of historical cost-based earnings numbers, prior to the consideration of the inflation-adjusted data. Chapter 3 reexamines Bowen's (1978, 1981) result regarding the differential discounting of earnings from operations and allowance for funds used during construction. The reexamination indicates that alteration of the deflation technique employed as a control for heteroscedasticity, together with the operationalization of the earnings terms, alters this conclusion as well. Chapter 4 discusses the empirical design employed in the consideration of the inflation-adjusted data, together with various summary statistics for the sample. Chapter 5 provides valuation results for the inflation-adjusted data viewed as both single and mulitple earnings streams for each firm, whichmore » suggest that the SFAS 33 numbers do not provide additional valuation-relevant information to equity investors.« less

Authors:
Publication Date:
OSTI Identifier:
6500760
Resource Type:
Thesis/Dissertation
Resource Relation:
Other Information: Thesis (Ph. D.)
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING, POLICY AND ECONOMY; ELECTRIC UTILITIES; INCOME; INVESTMENT; INFLATION; INSTITUTIONAL FACTORS; OWNERSHIP; PUBLIC UTILITIES; 296000* - Energy Planning & Policy- Electric Power

Citation Formats

Olsen, III, J C. Valuation implications of alternative income numbers for electric-utility investors. United States: N. p., 1984. Web.
Olsen, III, J C. Valuation implications of alternative income numbers for electric-utility investors. United States.
Olsen, III, J C. 1984. "Valuation implications of alternative income numbers for electric-utility investors". United States.
@article{osti_6500760,
title = {Valuation implications of alternative income numbers for electric-utility investors},
author = {Olsen, III, J C},
abstractNote = {This study examines the valuation implications of various historical cost and inflation-adjusted earning numbers of electric utilities. Chapter 1 describes the institutional aspects of historical cost and inflation accounting within this industry, and justifies the separate consideration of electric utilities on these bases. It also discusses the literature on cross-section valuation of equity securities and provides extensions to the theory that explicitly incorporate nonstationarities in the investment opportunity set and multiple earnings numbers posessing different perceived levels of riskiness. Chapter 2 provides the empirical design and summary statistics for the examination of the valuation of historical cost-based earnings numbers, prior to the consideration of the inflation-adjusted data. Chapter 3 reexamines Bowen's (1978, 1981) result regarding the differential discounting of earnings from operations and allowance for funds used during construction. The reexamination indicates that alteration of the deflation technique employed as a control for heteroscedasticity, together with the operationalization of the earnings terms, alters this conclusion as well. Chapter 4 discusses the empirical design employed in the consideration of the inflation-adjusted data, together with various summary statistics for the sample. Chapter 5 provides valuation results for the inflation-adjusted data viewed as both single and mulitple earnings streams for each firm, which suggest that the SFAS 33 numbers do not provide additional valuation-relevant information to equity investors.},
doi = {},
url = {https://www.osti.gov/biblio/6500760}, journal = {},
number = ,
volume = ,
place = {United States},
year = {Sun Jan 01 00:00:00 EST 1984},
month = {Sun Jan 01 00:00:00 EST 1984}
}

Thesis/Dissertation:
Other availability
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