1994
DOI: 10.2307/2597713
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Accounting for Profitability at the Consett Iron Company before 1914: Measurement, Sources, and Uses

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Cited by 9 publications
(3 citation statements)
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“…While there are many ways of characterizing a firm's performance, the profit-asset ratio is a popularly used measure (e.g., see Cho and Jootae, 2007;Lane et al, 1998) because it captures how a firm manages its resources provided by both the owner and third parties such as creditors and investors. It is therefore an appropriate measure for assessing the relative economic efficiency with which the firm uses its capital investments (Church et al, 1994).…”
Section: Baseline Specificationmentioning
confidence: 99%
“…While there are many ways of characterizing a firm's performance, the profit-asset ratio is a popularly used measure (e.g., see Cho and Jootae, 2007;Lane et al, 1998) because it captures how a firm manages its resources provided by both the owner and third parties such as creditors and investors. It is therefore an appropriate measure for assessing the relative economic efficiency with which the firm uses its capital investments (Church et al, 1994).…”
Section: Baseline Specificationmentioning
confidence: 99%
“…The construction, on a consistent basis, of profits may at times seem far too daunting, even when sources are common. Nevertheless, historians of accounting have contributed much to facilitate a more sophisticated understanding of corporate accounting methods, in order to shed fresh light on the long-run performance of firms in, for example, the British coal, iron, shipping and brewing industries (Arnold 1997;Church et al 1994;Edwards & Boyns 1994). In attempting to construct meaningful estimates of profitability in British brewing over the period 1918-55, I encountered considerable variation in the measurement of aggregate profits from three contemporary studies, all derived from the same basic source, the Inland Revenue's Schedule D tax returns (Gourvish 1995: 11-12).…”
Section: The Accounting Approach To Performance: Financial Measuresmentioning
confidence: 99%
“…He began with an estimate of the net cash-flow (misleadingly referred to as "profit", but explicitly excluding all non-cash deductions such as depreciation) for each pit, based on stated assumptions of the possible annual output, prices and costs and the duration of the leases held by the business. These estimated total annual "profits" were then valued as annuities, of the same duration as the leases held, at discount rates of 12 per cent and 14 per cent, a high discount rate -but in line with the returns expected from mines at that time (see, for example, Taylor, 1980, p.59;Church, Baldwin &Berry, 1994, p.716 andBoyns &Edwards, 1995, p.31). The techniques employed in the valuation indicate his clear understanding of discounting and net present value as a basis for financial decisions as early as 1863 -a point already noted by Baldwin, 1994, p.4, and further discussed below.…”
Section: Va Al Lu Ua At Ti Io On N O Of F M Mi In Ne Es Smentioning
confidence: 99%