Abstract
The American, British and Canadian professional accounting bodies have prescribed methods for calculating earnings per share which are materially different. The aim of this paper is to determine which of the three methods is most compatible with finance theory with particular reference to the effects of dilution. Only the Canadian method can be shown to be theoreticaly sound.
Original language | English |
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Pages (from-to) | 1-15 |
Number of pages | 15 |
Journal | Abacus |
Volume | 20 |
Issue number | 1 |
DOIs | |
State | Published - Jun 1984 |
Keywords
- Corporate finance
- Earnings per share