We perform specification tests of unbalanced panel data models for stock return prediction using an estimate of the coefficient covariance matrix robust to spatial heteroskedasticity. We apply estimators of individual effects and time effects in unbalanced panel models. For a panel of 1243 US firms for the period 1985–2002 we find that industry effects are significant and interact with firm cha...

This study aims to analyze differences in the company's financial performance before & after merger of PT Holcim Indonesia Tbk. The is measured using ratios: liquidity ratios (current ratio cash ratio), solvency (debt debt equity activity (total assets turn over fixed over), profitability (nett profit margin gross margin), market (earnings per share price earnings ratio). quantitative metho...

Earnings non-synchronicity captures the extent to which firm-specific factors determine a firm’s earnings, and has important implications to a firm’s information environment. Prior research shows that high earnings non-synchronicity impedes corporate outsiders’ information processing. Given managers generally possess superior information about their firms’ unique operating and reporting strateg...

This paper examines the relation between smooth past earnings performance and the credibility of voluntary management earnings forecasts. Specifically, using strings of increasing earnings per share as our measure of past performance, we demonstrate that both analyst forecast revisions and stock price reactions around management earnings forecasts are more pronounced when the firm has posted a ...

It is a common wisdom that individual stocks’ returns are difficult to predict, though in many situations it is important to have such estimates at our disposal. In particular, they are needed to determine the cost of capital. Market equilibrium models posit that expected returns are proportional to the sensitivities to systematic risk factors. Fama and French (1993) three-factor model explains...

this paper analyzes the relationship between capital structure and earning management. for analysing we used 119 non-financial companies that listed in tehran stock exchange from 2000 to 2008. the researchers will focus on comparing the jones model and the modified jones model, which are the two most frequently used model in empirical analysis nowadays. earnings management is a kind of manageme...

This paper analyzes the relationship between capital structure and earning management. For analysing we used 119 non-financial companies that listed in Tehran Stock Exchange from 2000 to 2008. The researchers will focus on comparing the Jones Model and the Modified Jones Model, which are the two most frequently used model in empirical analysis nowadays. Earnings management is a kind of manageme...

This paper analyzes the relationship between capital structure and earning management. For analyzing we use 119 non-financial companies that listed in Tehran Stock Exchange from 2000 to 2008. The researchers will focus on comparing the Jones Model and the Modified Jones Model, which are the two most frequently used model in empirical analysis nowadays. Earnings management is a kind of managemen...

Long historical averages of real earnings help forecast present values of future real dividends. With aggregate U.S. stock market data (1871-1986), a vector-autoregressive forecast of the present value of future dividends is, for each year, roughly a weighted average of moving-average arnings and current real price, with between two thirds and three fourths of the weight on the earnings measure...