Security Analysis Series
- CEASA has been working in Security Analysis with the launch of our series at the 2005 roundtable that brought together a wide group of policymakers from around the country.
Earnings and book values are accounting numbers, so the paper shows how the risk imbedded in earnings-to-price (E/P) and book-to-price (B/P) ratios can be attributed to the way that earnings and book values are measured under accounting principles.
To facilitate an informed use of insurers’ financial reports, this manuscript reviews the accounting practices of insurance companies, discusses the financial analysis and valuation of insurers, summarizes relevant insights from academic research, and provides related empirical evidence.
The recent stock option backdating scandal raises a number of corporate governance and auditing issues.
Investors have increasingly turned to the analysis of cash flows as a complement to, or even substitute for, the income statement. This occasional paper deals with this issue by addressing two questions. First, under what circumstances does it make sense to evaluate a firm's performance by focusing on cash flows rather than income/expense flows? Second, given the answer to this question, how can one best conceptualize a schedule of cash flows?
Professor James Ohlson of Arizona State University was commissioned to prepare this Occasional Paper.
This roundtable was hosted by CEASA and Morgan Stanley. The goal of this meeting was to provide a forum for participants who have or are working in different areas of the investment process. Most of the participants have been in different positions in their careers and were able to incorporate these different perspectives into the discussion.
One often hears from many corporate officers and other market participants that investors have short-term investment horizons, care only about next quarter's earnings, use simple summary measures (like P/E's), and do not focus on core fundamentals. This conversation aimed to confirm or dispel these perceptions.