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Who is moving to the forefront when it comes to forecasting corporate value?

You might be surprised. Answer: Accountants.

May 15, 2006


Peter Easton, Notre Dame Alumni Professor of Accountancy, says accounting methods and principles are increasingly the preferred tools for determining corporate valuation, catapulting accountants into the stimulating world of financial forecasting.

Easton’s new book, Financial Accounting for MBAs, printed by Cambridge Business Publishers, advances the groundbreaking argument that analyzing income statements, balance sheets and other financial statements of publicly traded companies is a more effective way of predicting future value than current traditional methods. For example, he examines trailing earnings to project the future payoff that an investor will receive from a stock. Sales of his book, co-authored with John J. Wild and Robert F. Halsey, are brisk. Easton has taught these methods for 10 years in the classroom.

To support his assessment, Easton points out that the CEOs of some of the largest investment banking firms are trained as accountants.

Easton serves as the Director for the Center for Accounting Research and Education at Notre Dame. It hosts biannual conferences providing a forum for doctoral candidates and national and international accounting faculty to interact and exchange ideas. Easton, who holds a Ph.D. in accounting and finance from the University of California, Berkeley, is editor of the Review of Accounting Studies, has served as associate editor of 11 leading accounting journals, organizes accounting conferences nationally and internationally, publishes widely on corporate valuation and serves as an expert witness in the Delaware Chancery Court.

To learn more about Professor Peter Easton, his research and writings, visit business.nd.edu/petereaston.