Changes in Return on Assets (EBITDA/Assets) Surrounding Focus List Release
This table reports levels and changes in the mean and median levels of EBITDA/Assets for companies that appeared on Council of Institutional Investors focus lists between 1991 and 1994. EBITDA/Assets is also reported for comparison portfolios of firms matched on 2-digit SIC and on membership in the S&P 500 index. Year zero is the fiscal year in which a firm is first reported on a focus list. Accounting information in year +3 was unavailable for all firms that appeared on the 1994 focus list and was incomplete in year +3 for some firms on the 1993 focus list. On average, the industry matched and S&P samples contain 2,825 and 1,625 firm-years of data, respectively. The second panel shows first differences in return on assets between periods. Tests of statistical significance of inter-sample differences as well as within sample changes from year zero levels are noted at the 1%, 5% and 10% levels as a, b, and c respectively. These tests are computed using a Wilcoxon statistic when comparing medians and a t-statistics when comparing means.
| Raw levels | Industry-adjusted | S&P 500-adjusted | |||||
| Year | N | Mean | Median | Mean | Median | Mean | Median |
| -3 | 107 | 14.7% | 15.4% | 6.9%a | 5.5%a | -2.7%a | -0.7%b |
| -2 | 108 | 12.7% | 17.7% | 5.1%a | 2.7%a | -4.1%a | -3.6%a |
| -1 | 107 | 11.7% | 10.8% | 3.8%a | 2.0% | -5.0%a | -4.0%a |
| 0 | 107 | 10.7% | 10.5% | 2.7%a | 0.9% | -6.1%a | -4.3%a |
| +1 | 102 | 14.4% | 10.9% | -1.1% | 1.0% | -6.1%a | -4.4%a |
| +2 | 96 | 13.0% | 12.9% | 4.0%a | 2.8%a | -4.7%a | -2.9%a |
| +3 | 82 | 13.2% | 13.5% | 6.9%a | 3.6%a | -4.7%a | -2.5%a |
Year to year comparisons
| (0,+1) | 103 | 0.6% | 1.3%a | -5.4% | 0.7%b | -0.2% | 0.9%c |
| (0,+2) | 99 | 2.0%a | 1.9%a | 2.1% | 0.8% | 1.2% | 1.3%b |
| (0,+3) | 82 | 2.0%a | 2.1%a | 2.6%a | 3.0%a | 0.4% | 1.1%c |
