Do share prices fully reflect the information about future earnings in accruals and cash flow?
نویسندگان
چکیده
منابع مشابه
Do dividends convey information about future earnings?
Yes. We find that dividend changes predict future unexpected earnings changes in each of the next four quarters. These earnings impacts are persistent, leading to higher than expected earnings levels for at least three years after the dividend change. These results are robust to various measures of expected earnings, including analyst forecasts and a flexible function of past earnings and retur...
متن کاملInformation in Accruals about the Quality of Earnings*
We extend the analysis in Sloan (1996) to identify the source of information in accruals about earnings quality. Our results indicate that information in accruals about earnings quality is not limited to the current accruals analyzed by Sloan, but extends to non-current accruals. We also show that while information in accruals originates almost exclusively from asset accruals, liability accrual...
متن کاملThe Accrual Anomaly: International Evidence
We investigate whether the accruals anomaly (Sloan 1996), characterized by U.S. stock prices over-weighting the role of accrual persistence and under-weighting the role of operating cash flow persistence for future earnings, is a local manifestation of a global phenomenon. Hence, we examine whether stock prices in six other major capital markets and Japan) fully reflect the implications of the ...
متن کاملInvestigation of Rational Pricing of Cash and Accruals Components the Earnings Considering the Moderating Effect of Conservatism
Abstract Accounting earning and its components are the most important accounting items in stock pricing. If investors do not achieve abnormal returns using this information, the capital market is said to have acted efficiently in reflecting accounting earning information in stock pricing. In other words, pricing stocks is rational. The purpose of this study is to investigate the market re...
متن کاملWhat Do Asset Prices Tell Us about the Future?
Consider, for example, the routine betting that takes place daily on horse races. Before the race starts, no one knows for sure which horse will win. Suppose that $1 would get you $2 if you bet on Streak of Lightning to win while the same $1 would pay you $20 if bet on Molasses to end up in the winner's circle. Stated differently , the " price " of a stake in Molasses is much less than that of ...
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ژورنال
عنوان ژورنال: South African Journal of Business Management
سال: 1999
ISSN: 2078-5976,2078-5585
DOI: 10.4102/sajbm.v30i4.763