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Journal Article

Recent revisions to corporate profits: what we know and when we knew it


Abstract: Initial estimates in the National Income and Product Accounts significantly overstated U.S. corporate profits for the 1998-2000 period. Subsequent revisions reveal that the profitability of the nation's corporate sector in the late 1990s was substantially weaker than \\"real-time\\" data indicated. An unexpected surge in employee stock options exercised-and perhaps, in some sectors, firms' inflated statements of profit-may help explain the large downward revisions.

Keywords: Statistics; Corporate profits; Economic indicators; Stock options;

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Bibliographic Information

Provider: Federal Reserve Bank of New York

Part of Series: Current Issues in Economics and Finance

Publication Date: 2004

Volume: 10

Issue: Mar

Order Number: 3