The Informational Content of General Price Level Adjusted Earnings: Some Empirical Evidence.

Abstract ABSTRACT: This study explores the extent to which general price-level restated data contain information not included in currently available historical-cost data. The criterion employed is the relative degree of association between alternative accounting measures and securities price behavior. This association is one measure of the extent to which a given information set is related to the broader set underlying investors' decisions. The results obtained in this study appear to support the hypothesis that price-level restated data contain information which is not included in the financial reports currently available.