On the Relationship Between Accounting Earnings and Stock Returns [Elektronisk Resurs] PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download On the Relationship Between Accounting Earnings and Stock Returns [Elektronisk Resurs] PDF full book. Access full book title On the Relationship Between Accounting Earnings and Stock Returns [Elektronisk Resurs] by Hans Hällefors. Download full books in PDF and EPUB format.
![On the Relationship Between Accounting Earnings and Stock Returns [Elektronisk Resurs] PDF](https://books.google.com/books/content/images/frontcover/vbTbswEACAAJ?fife=w150-h200)
Author: Hans Hällefors
Publisher:
ISBN: 9789172588844
Category :
Languages : en
Pages : 180
Get Book Here
Book Description
![On the Relationship Between Accounting Earnings and Stock Returns [Elektronisk Resurs] PDF](https://books.google.com/books/content/images/frontcover/vbTbswEACAAJ?fife=w80-h100)
Author: Hans Hällefors
Publisher:
ISBN: 9789172588844
Category :
Languages : en
Pages : 180
Get Book Here
Book Description
Author:
Publisher:
ISBN: 9789172588837
Category :
Languages : en
Pages : 180
Get Book Here
Book Description
Author: Peng-Chia Chiu
Publisher:
ISBN: 9781303167850
Category :
Languages : en
Pages : 137
Get Book Here
Book Description
This dissertation includes three chapters, which are about empirical investigation of the return earnings relation. Chapter 1 explores the differential timing in stock price incorporation of industry and firm-specific earnings. I find that on average stock returns anticipate industry revenue and expense components earlier than the respective firm-specific components. Further analysis shows that the timing difference between industry versus firm-specific information about revenue or expense is inversely related to product market competition and accounting reporting quality. Additionally, the timing difference between industry versus firm-specific information about expense line-items varies across line-items. Overall, these results aid in our understanding of the price discovery process with respect to accounting earnings information. Chapter 2 examines a new dimension, the effect of seasonality, on the relation between expected earnings (EE) and subsequent price drift. The key finding is that the relation between EE proxied by analyst forecasts and future returns is positive in non-January months but negative in January. This reverse January relation is observed among different types of stocks, domestic and international markets, and cannot be explained away by other variables associated with January returns. Further analysis suggests that the reverse January relation is a result of a temporary price drift away from fundamental value. The results illustrate the importance of controlling for the calendar-time dimension when studying market efficiency with respect to expected earnings. Chapter 3 investigates whether seasonally-differenced quarterly gross margin, a component of earnings, predicts future stock returns incremental to previously documented pricing anomalies based on financial accounting variables. A long/short trading strategy based on the gross profit surprises yields monthly returns over 115 basis points and generates positive returns in 113 out of 136 calendar quarters spanning 1977-2010. Further analysis shows that the return spread is larger for firms in industries characterized by low levels of capital expenditures and R & D intensity. Since 2000, gross profit surprise hedge portfolios yield returns of 91 basis points per month compared to 42 basis points per month for earnings surprise-based hedge strategies. The results suggest that gross margin contains information about future core profitability that is incremental to reported earnings and that information is reflected in stock prices with a delay.
Author: Levon Babalyan
Publisher:
ISBN:
Category :
Languages : en
Pages : 36
Get Book Here
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: Frederick Graham Thouret
Publisher:
ISBN:
Category : Corporations
Languages : en
Pages : 180
Get Book Here
Book Description
Author: Vesna Janjic
Publisher:
ISBN:
Category :
Languages : en
Pages : 16
Get Book Here
Book Description
The relationship between accounting earnings and stock returns was subject of numerous studies over the past forty years. The first study of this relationship conducted by Ball and Brown in 1968 was the basis for many subsequent studies. Given the specific economic environment and less developed capital markets, these studies are relatively rare in transition economies. In the present study we investigate the relationship between accounting earnings and stock returns in a relatively underdeveloped Serbian capital market from 2006 to 2011. We use three regression specifications, namely the price, return and differenced model. The results suggest that earnings levels, both scaled and unsealed, have value relevancy on the Serbian capital market. We find no significant earnings response coefficients in various specifications of the differenced model. We also find evidence that stock prices lead accounting earnings and that negative earnings are more transitory than the positive earnings.
Author: Michael Constas
Publisher:
ISBN:
Category : Corporate profits
Languages : en
Pages : 320
Get Book Here
Book Description
Author: Darryl L. Craig
Publisher:
ISBN:
Category : Corporate profits
Languages : en
Pages : 368
Get Book Here
Book Description
Author: Anne Marie Alley Sergeant
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
Book Description
Author: Anwer Shehab Ahmed
Publisher:
ISBN:
Category : Stocks
Languages : en
Pages : 136
Get Book Here
Book Description
