Journal ArticleDOI
Price-earnings regressions in the presence of prices leading earnings
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TLDR
The authors analytically evaluates alternative specifications of price-earnings regressions when prices lead earnings, i.e., reflect information about future earnings that is not reflected in the past time series of earnings.About:
This article is published in Journal of Accounting and Economics.The article was published on 1992-06-01. It has received 182 citations till now. The article focuses on the topics: Earnings response coefficient & Price–earnings ratio.read more
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Accounting earnings and cash flows as measures of firm performance: The role of accounting accruals
TL;DR: The authors investigates circumstances under which accruals are predicted to improve earnings' ability to measure firm performance, as reflected in stock returns, and the results of empirical tests are consistent with these predictions.
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The information content of losses
TL;DR: In this article, the authors hypothesize that losses are less informative than profits about the firm's future prospects, and they also show that the documented increase in the earnings response coefficent as the cumulation period increases appears to be due exclusively to the effect of losses.
Journal ArticleDOI
Capital markets research in accounting
TL;DR: This paper reviewed empirical research on the relation between capital markets and financial statements and found that the principal sources of demand for capital markets research in accounting are fundamental analysis and valuation, tests of market efficiency, and the role of accounting numbers in contracts and the political process.
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The pricing of discretionary accruals
TL;DR: In this paper, the authors examined if the stock market prices discretionary accruals and found that, on average, the market attaches value to discretionary items and that discretionary items predict future profitability and dividend changes.
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An empirical assessment of the residual income valuation model
TL;DR: In this paper, the authors provide an empirical assessment of the residual income valuation model proposed in Ohlson (Ohlson, J.A., 1995) and find that the key original empirical implications of the model stem from the information dynamics that link current information to future residual income.
References
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Journal ArticleDOI
Using daily stock returns: The case of event studies
TL;DR: In this paper, the authors examine properties of daily stock returns and how the particular characteristics of these data affect event study methodologies and show that recognition of autocorrelation in daily excess returns and changes in their variance conditional on an event can sometimes be advantageous.
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Dividend Policy, Growth, and the Valuation of Shares
TL;DR: In this paper, the effect of differences in dividend policy on the current price of shares in an ideal economy characterized by perfect capital markets, rational behavior, and perfect certainty is examined.
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An empirical evaluation of accounting income numbers
Ray Ball,Philip Brown +1 more
TL;DR: In this article, it is argued that income numbers cannot be defined substantively, that they lack "meaning" and are therefore of doubtful utility, and the argument stems in part from the patchwork development of account-based theories.
Book
Positive Accounting Theory
TL;DR: In this article, the authors review the theory and methodology underlying the economics-based empirical literature in accounting and discuss the role of theory in empirical work and the extent to which the theories are consistent with those studies' evidence.
Journal ArticleDOI
Business conditions and expected returns on stocks and bonds
Eugene F. Fama,Kenneth R. French +1 more
TL;DR: For example, this paper found that expected returns on common stocks and long-term bonds contain a term or maturity premium that has a clear business-cycle pattern (low near peaks, high near troughs).