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Article: Stanford Business School Research Examines Linkage Between Return on Investment and the Economic Rate of Return.
- Article from:
- AScribe Business & Economics News Service
- Article date:
- March 16, 2007
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Byline: Stanford Graduate School of Business
STANFORD, Calif., March 16 (AScribe Newswire) -- For years, return on investment (ROI) and related financial accounting ratios have been widely used as key measures of business profitability. But what three accounting professors from the Stanford Graduate School of Business recently discovered was that, despite its widespread acceptance, the economic meaning of the ROI metric has only been vaguely understood.
The idea for their study arose through a casual conversation between faculty colleagues Stefan Reichelstein and Mark Soliman. Reichelstein, the William R. Timken Professor of Business who specializes in ...