An Empirical Comparison of Alternative Methods for the Estimation of the Degree of Operating Leverage
I tiakina i:
| I whakaputaina i: | The Financial Review vol. 27, no. 2 (May 1992), p. 309-321 |
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| Kaituhi matua: | |
| Ētahi atu kaituhi: | |
| I whakaputaina: |
Blackwell Publishing Ltd.
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| Ngā marau: | |
| Urunga tuihono: | Citation/Abstract Full Text - PDF |
| Ngā Tūtohu: |
Kāore He Tūtohu, Me noho koe te mea tuatahi ki te tūtohu i tēnei pūkete!
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| Whakarāpopotonga: | There is much diversity in the approaches used to estimate the degree of operating leverage in empirical financial research. Two techniques for the estimation of the degree of operating leverage coefficients are analyzed and compared using a sample of 245 firms in 7 different industries over 2 alternative estimation periods. The results indicate that the O'Brien and Vanderheiden (1987) estimation technique differs significantly from the Mandelker and Rhee (1984) estimation technique. Furthermore, the O'Brien and Vanderheiden estimates appear to be more consistent with the classical ex ante model of degree of operating leverage coefficients. These results may facilitate future research on the estimation of the degree of operating leverage and on the relationship between operating leverage and systematic risk. |
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| ISSN: | 0732-8516 1540-6288 0066-5363 |
| Puna: | ABI/INFORM Global |