Conservatism, growth, and return on investment

Abstract

The Publisher apologizes for the errors in this article. Proposition 1, Eq. 3 is missing two “-1”. The erroneous “+” should also be deleted. Please see corrected version below:Proposition 1Conservative accounting implies:$ {ROI}_{T}(\vec{\lambda}) \left\{ \begin{array}{ll} \geq r \;if \; \lambda_{t} \leq r\;{for\; all}\;1\leq t \leq T-1\\ \leq r \;if \;\lambda_{t} \geq r\;{for\; all}\; 1\leq t \leq T-1. \end{array} \right. $(3)Conversely, with liberal accounting,\({ROI}_{T}(\vec{\lambda})\leq r\)ifλt≤rfor all1 ≤t≤T− 1,while\({ROI}_{T}(\vec{\lambda})\geq r\)forλt≥r, 1 ≤t≤T− 1.