Abstract
Existing evidence indicates that the time-series behaviour of corporate annual earnings is well approximated by a random-walk, or some similar process. There is, however, little Australian evidence on this issue.
This note presents the results of an investigation into the time-series behaviour of the annual earnings of a sample of relatively large Australian corporations. The conclusion, that successive changes in such earnings are well approximated by a random-walk, is consistent with the existing evidence.
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