Author: Thomas A. Carnes
Publisher:
ISBN:
Category :
Languages : en
Pages : 142
Book Description
The Effects of Permanent and Transitory Earnings Changes on Earnings Response Coefficients, a Time-series Analysis of Financial Statements Subcomponents
Author: Thomas A. Carnes
Publisher:
ISBN:
Category :
Languages : en
Pages : 142
Book Description
Publisher:
ISBN:
Category :
Languages : en
Pages : 142
Book Description
The Effects of Permanent and Transitory Earnings Changes on Earnings Response Coefficients
Author: Thomas A. Carnes
Publisher:
ISBN:
Category : Price-earnings ratio
Languages : en
Pages : 284
Book Description
Publisher:
ISBN:
Category : Price-earnings ratio
Languages : en
Pages : 284
Book Description
The Differential Effects of Unexpected Permanent and Transitory Earnings Changes on Equity Returns
Author: Philip Roger Regier
Publisher:
ISBN:
Category : Corporate profits
Languages : en
Pages : 186
Book Description
Publisher:
ISBN:
Category : Corporate profits
Languages : en
Pages : 186
Book Description
Earnings Response Coefficient
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
This paper reports new findings from applying portfolio method, which shows a much bigger earnings impact on share prices (ERC) compared to the erstwhile reports of ERC using individual events, averaged over the sample. We estimate cumulative abnormal returns, CAR, across a test window for each quarterly earnings announcement event across one accounting year. The CARs are then regressed against earnings changes of individual firms and portfolios. The findings show a significant positive CAR when earnings increases; and a negative CAR if earnings declines. The ERC is very small in the test period of 2001-14, which is consistent with published results for years before 2000. The ERC size magnifies substantially due to the grouping effect used through portfolio formation. What is significant is that the use of portfolio method, by removing the idiosyncratic errors, show a price response very close to the size of earnings (i.e., ERC of 0.93) with a very high R-square of 75 percent. The last evidence supports strongly the value relevance accounting theory that has not seen much support from averaging the price responses of individual event responses.
Publisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
This paper reports new findings from applying portfolio method, which shows a much bigger earnings impact on share prices (ERC) compared to the erstwhile reports of ERC using individual events, averaged over the sample. We estimate cumulative abnormal returns, CAR, across a test window for each quarterly earnings announcement event across one accounting year. The CARs are then regressed against earnings changes of individual firms and portfolios. The findings show a significant positive CAR when earnings increases; and a negative CAR if earnings declines. The ERC is very small in the test period of 2001-14, which is consistent with published results for years before 2000. The ERC size magnifies substantially due to the grouping effect used through portfolio formation. What is significant is that the use of portfolio method, by removing the idiosyncratic errors, show a price response very close to the size of earnings (i.e., ERC of 0.93) with a very high R-square of 75 percent. The last evidence supports strongly the value relevance accounting theory that has not seen much support from averaging the price responses of individual event responses.
Accounting Earnings Can Explain Most of Security Returns
Author: Peter Douglas Easton
Publisher:
ISBN: 9780646086972
Category : Stocks
Languages : en
Pages : 31
Book Description
Publisher:
ISBN: 9780646086972
Category : Stocks
Languages : en
Pages : 31
Book Description
Weekly Weather and Crop Bulletin
Author:
Publisher:
ISBN:
Category : Crops and climate
Languages : en
Pages : 32
Book Description
Publisher:
ISBN:
Category : Crops and climate
Languages : en
Pages : 32
Book Description
Innocent Bystanders? Monetary Policy and Inequality in the U.S.
Author: Mr.Olivier Coibion
Publisher: International Monetary Fund
ISBN: 1475505493
Category : Business & Economics
Languages : en
Pages : 57
Book Description
We study the effects and historical contribution of monetary policy shocks to consumption and income inequality in the United States since 1980. Contractionary monetary policy actions systematically increase inequality in labor earnings, total income, consumption and total expenditures. Furthermore, monetary shocks can account for a significant component of the historical cyclical variation in income and consumption inequality. Using detailed micro-level data on income and consumption, we document the different channels via which monetary policy shocks affect inequality, as well as how these channels depend on the nature of the change in monetary policy.
Publisher: International Monetary Fund
ISBN: 1475505493
Category : Business & Economics
Languages : en
Pages : 57
Book Description
We study the effects and historical contribution of monetary policy shocks to consumption and income inequality in the United States since 1980. Contractionary monetary policy actions systematically increase inequality in labor earnings, total income, consumption and total expenditures. Furthermore, monetary shocks can account for a significant component of the historical cyclical variation in income and consumption inequality. Using detailed micro-level data on income and consumption, we document the different channels via which monetary policy shocks affect inequality, as well as how these channels depend on the nature of the change in monetary policy.
The Effect of Capital Structure Changes on the Earnings Response Coefficients
Author: Jee In Jang
Publisher:
ISBN:
Category : Corporate debt
Languages : en
Pages : 22
Book Description
Examines whether the riskiness of a firm's debt (default risk) affects the relationship between unexpected changes in earnings and stock returns.
Publisher:
ISBN:
Category : Corporate debt
Languages : en
Pages : 22
Book Description
Examines whether the riskiness of a firm's debt (default risk) affects the relationship between unexpected changes in earnings and stock returns.
Corporate Payout Policy
Author: Harry DeAngelo
Publisher: Now Publishers Inc
ISBN: 1601982046
Category : Corporations
Languages : en
Pages : 215
Book Description
Corporate Payout Policy synthesizes the academic research on payout policy and explains "how much, when, and how". That is (i) the overall value of payouts over the life of the enterprise, (ii) the time profile of a firm's payouts across periods, and (iii) the form of those payouts. The authors conclude that today's theory does a good job of explaining the general features of corporate payout policies, but some important gaps remain. So while our emphasis is to clarify "what we know" about payout policy, the authors also identify a number of interesting unresolved questions for future research. Corporate Payout Policy discusses potential influences on corporate payout policy including managerial use of payouts to signal future earnings to outside investors, individuals' behavioral biases that lead to sentiment-based demands for distributions, the desire of large block stockholders to maintain corporate control, and personal tax incentives to defer payouts. The authors highlight four important "carry-away" points: the literature's focus on whether repurchases will (or should) drive out dividends is misplaced because it implicitly assumes that a single payout vehicle is optimal; extant empirical evidence is strongly incompatible with the notion that the primary purpose of dividends is to signal managers' views of future earnings to outside investors; over-confidence on the part of managers is potentially a first-order determinant of payout policy because it induces them to over-retain resources to invest in dubious projects and so behavioral biases may, in fact, turn out to be more important than agency costs in explaining why investors pressure firms to accelerate payouts; the influence of controlling stockholders on payout policy --- particularly in non-U.S. firms, where controlling stockholders are common --- is a promising area for future research. Corporate Payout Policy is required reading for both researchers and practitioners interested in understanding this central topic in corporate finance and governance.
Publisher: Now Publishers Inc
ISBN: 1601982046
Category : Corporations
Languages : en
Pages : 215
Book Description
Corporate Payout Policy synthesizes the academic research on payout policy and explains "how much, when, and how". That is (i) the overall value of payouts over the life of the enterprise, (ii) the time profile of a firm's payouts across periods, and (iii) the form of those payouts. The authors conclude that today's theory does a good job of explaining the general features of corporate payout policies, but some important gaps remain. So while our emphasis is to clarify "what we know" about payout policy, the authors also identify a number of interesting unresolved questions for future research. Corporate Payout Policy discusses potential influences on corporate payout policy including managerial use of payouts to signal future earnings to outside investors, individuals' behavioral biases that lead to sentiment-based demands for distributions, the desire of large block stockholders to maintain corporate control, and personal tax incentives to defer payouts. The authors highlight four important "carry-away" points: the literature's focus on whether repurchases will (or should) drive out dividends is misplaced because it implicitly assumes that a single payout vehicle is optimal; extant empirical evidence is strongly incompatible with the notion that the primary purpose of dividends is to signal managers' views of future earnings to outside investors; over-confidence on the part of managers is potentially a first-order determinant of payout policy because it induces them to over-retain resources to invest in dubious projects and so behavioral biases may, in fact, turn out to be more important than agency costs in explaining why investors pressure firms to accelerate payouts; the influence of controlling stockholders on payout policy --- particularly in non-U.S. firms, where controlling stockholders are common --- is a promising area for future research. Corporate Payout Policy is required reading for both researchers and practitioners interested in understanding this central topic in corporate finance and governance.
Smoothing Income Numbers
Author: Joshua Ronen
Publisher: Addison Wesley Publishing Company
ISBN: 9780201063479
Category : Income accounting
Languages : en
Pages : 148
Book Description
Publisher: Addison Wesley Publishing Company
ISBN: 9780201063479
Category : Income accounting
Languages : en
Pages : 148
Book Description