The Association Between Stock Returns and Earnings for Cross-listed Firms PDF Download
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Author: Marilyn B. Misch
Publisher:
ISBN:
Category : Investments, Foreign
Languages : en
Pages : 112
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Author: Marilyn B. Misch
Publisher:
ISBN:
Category : Investments, Foreign
Languages : en
Pages : 112
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Author: Jingwen Mu
Publisher:
ISBN:
Category : Rate of return
Languages : en
Pages : 319
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Book Description
This thesis investigates some accounting issues that arise from firms' choices to cross-list stocks on the U.S. and the U.K. markets. Prior research shows that the benefits of cross-listing include a more liquid stock market, an increase in investor recognition, a decrease in the cost of capital, and a commitment to better corporate governance practices. However, the extent to which cross-listing can be used as an effective bonding mechanism is closely related to the choice of cross-listing destinations. Specifically, I hypothesise that differences in firm characteristics, accounting standards setting procedures, and the legal and regulatory environments between the U.S. and the U.K. markets lead to the expectation that firms cross-listed in the U.S. markets have better earnings quality than firms cross-listed in the U.K. In the context of this thesis, earnings quality refers to how precisely reported earnings convey a firm's true economic performance, and it is measured by models of accruals, earnings persistence and predictability, smoothness, and target beating. The results suggest the following. First, firms use accruals-based earnings management techniques to boost their earnings in the cross-listing year, but such evidence is only observed for firms cross-listed on the U.K markets. A further examination shows that, for the U.K. sample, the extent of earnings management is influenced by whether a firm raises new equity capital at cross-listing, while no such evidence is found for the U.S. sample. Second, the results provide mixed evidence that cross-listing firms have higher earnings quality than their home country counterparts that are not cross-listed. For firms cross-listed in the U.S., the differences in earnings quality are greater in the post-SOX period. Third, this thesis directly compares firms that choose between different cross-listing destinations and finds that firms cross-listed in the U.S. have higher earnings quality than firms cross-listed in the U.K. Fourth, home-country institutions are found to have a significant influence on cross-listing firms' reporting behaviour. The results are robust to controlling for innate factors known to affect the quality of earnings. Some interpretation issues arise when different measures of earnings quality are used, which shed light on future research directions.
Author: Gita Rama Rao
Publisher:
ISBN:
Category : Stocks
Languages : en
Pages : 121
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Book Description
Author: AICPA
Publisher: John Wiley & Sons
ISBN: 1945498870
Category : Business & Economics
Languages : en
Pages : 800
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Book Description
Updated for new accounting and auditing guidance issued, this valuable tool provides hundreds of high quality disclosure examples from carefully selected U.S. companies of different sizes, across industries such as banking, credit and insurance, communication services, and healthcare from such organizations as Scotts Miracle-Gro, Coca-Cola, Caterpillar, and BB&T. Illustrations of the most important, immediate, and challenging disclosures, such as derivatives and hedging, consolidations, and fair value measurement are provided. Hot topics include statement of cash flows, going concern, and business combinations and intangibles. This edition also provides clear, direct guidance to help you understand and comply with all significant reporting requirements and detailed indexes to help you quickly find exactly what you need.
Author: Lambros Stefanis
Publisher:
ISBN:
Category :
Languages : en
Pages : 32
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Book Description
Market anomalies have always been an object of research by many scholars and financial professionals. Among others, Basu (1997), Fama and French (1992), Jaffe, et.al. (1989), and Lakonishok, et.al. (1994) documented the existence of P/E effect as market inefficiency, in the US and UK markets at different periods of time. Our research showed that the P/E phenomenon also exists in the Athens Stock Exchange (ASE). In respect to our resulting evidence, the ratio is found to be negatively related to subsequent equity performance. Furthermore, accounting variables such as market value and earnings growth play an important role in the explanation of the cross- sectional variation of stock returns. The size-effect as it appears in literature, is found to hold for firms listed on ASE. The resulting evidence presented industry as being an indicative factor of such accounting variables, as well as, past market returns to be negatively related to subsequent stock performance. We could not verify the existence of P/E effect on firms listed on ASE using the extrapolation model of Lakonishok, et.al. (1994). However, our results are consistent with the overreaction hypothesis of De Bondt and Thaler (1985, 1987) in relation to news announcements.
Author: Gita R. Rao
Publisher:
ISBN:
Category : Economics
Languages : en
Pages : 32
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Author: Stijn Claessens
Publisher: World Bank Publications
ISBN:
Category : Rate of return
Languages : en
Pages : 28
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Author: Levon Babalyan
Publisher:
ISBN:
Category :
Languages : en
Pages : 36
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Book Description
This study compares the informational content of accounting earnings reported by Swiss companies under the standards generally accepted in Switzerland and earnings reported under the International Accounting Standards and US GAAP. I examine the relative explanatory power and earnings response coefficients in regressions of reported numbers on market returns of the companies listed on the Swiss Stock Exchange and presenting financial statements under these different accounting frameworks. After controlling for firm size, foreign market listing, audit quality and sensitivity to some variable specifications, the obtained results suggest that a claim of compliance to IAS by a listed Swiss company does not necessarily imply that its earnings numbers are more value-relevant than if reported under Swiss standards. The company size and audit quality proved to be significant factors for the quality of reported numbers. The empirical results also confirm the hypothesis that firms reporting under US GAAP provide more informative earnings numbers. This confirmation, however, must be interpreted with caution because of the small sample size and high presence of these US GAAP firms on foreign stock markets.
Author: Scott I. Jerris
Publisher:
ISBN:
Category :
Languages : en
Pages : 105
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Book Description
Author: Roger G. Ibbotson
Publisher:
ISBN: 9781556232312
Category : Actions (Titres de société) - Prix - Prévision
Languages : en
Pages : 202
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Book Description
