What question did this study set out to answer?

The paper aims to explore the relationship between segment earnings covariability and multisegment company returns, integrating portfolio theory and segment financial reporting.

March 18, 2026The Accounting Review

Covariability of Segment Earnings and Multisegment Company Returns.

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Authors

WKWilliam R. KinneyIndianapolis Zoo

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Implication

Analysis reveals the relationship between segment earnings covariability and company returns, suggesting implications for market risk evaluation.

Key Points

The paper aims to explore the relationship between segment earnings covariability and multisegment company returns, integrating portfolio theory and segment financial reporting.
Examined covariability of segment earnings and market returns for multisegment firms.
Developed an ex post accounting measure of diversification.
Applied the measure to existing accounting data.
Related the accounting measure to market-determined risk.
Established a link between segment earnings diversification and market evaluation of risk.
Provided empirical evidence supporting the integration of accounting measures with market risk measures.

Cite This Study

William R. Kinney (1972) studied this question.

synapsesocial.com/papers/69ba42bc4e9516ffd37a3495 https://doi.org/10.2308/tar-4482682

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Implication

Analysis reveals the relationship between segment earnings covariability and company returns, suggesting implications for market risk evaluation.

Covariability of Segment Earnings and Multisegment Company Returns.

Discussion

Member takes

Implication

Key Points

Cite This Study

Covariability of Segment Earnings and Multisegment Company Returns.

Discussion

Member takes

Implication

Key Points

Cite This Study

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